H2O America (HTO)vsSouthwest Gas Holdings Inc (SWX)
HTO
H2O America
$57.67
-2.68%
UTILITIES · Cap: $2.41B
SWX
Southwest Gas Holdings Inc
$91.90
+0.21%
UTILITIES · Cap: $6.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Gas Holdings Inc generates 138% more annual revenue ($1.94B vs $816.28M). SWX leads profitability with a 22.7% profit margin vs 12.9%. SWX appears more attractively valued with a PEG of 2.24. SWX earns a higher WallStSmart Score of 57/100 (C).
HTO
Buy57
out of 100
Grade: C
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.7%
Fair Value
$77.24
Current Price
$57.67
$19.57 discount
Margin of Safety
-18.3%
Fair Value
$72.67
Current Price
$91.90
$19.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
HTO profiles as a value stock while SWX is a declining play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.59 — expect wider price swings.
HTO is growing revenue faster at 9.4% — sustainability is the question.
HTO generates stronger free cash flow (-239M), providing more financial flexibility.
Bottom Line
HTO scores higher overall (57/100 vs 57/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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