WallStSmart

H2O America (HTO)vsWEC Energy Group Inc (WEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WEC Energy Group Inc generates 1101% more annual revenue ($9.80B vs $816.28M). WEC leads profitability with a 15.9% profit margin vs 12.9%. WEC appears more attractively valued with a PEG of 2.57. WEC earns a higher WallStSmart Score of 60/100 (C+).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

WEC

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.7%)

Margin of Safety

+32.7%

Fair Value

$77.24

Current Price

$57.67

$19.57 discount

UndervaluedFair: $77.24Overvalued
WECSignificantly Overvalued (-40.2%)

Margin of Safety

-40.2%

Fair Value

$80.67

Current Price

$117.94

$37.27 premium

UndervaluedFair: $80.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

WEC2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.622/10

Expensive relative to growth rate

Free Cash FlowQuality
$-239.11M2/10

Negative free cash flow — burning cash

WEC4 concerns · Avg: 2.0/10
PEG RatioValuation
2.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-32.5%2/10

Earnings declined 32.5%

Free Cash FlowQuality
$-905.40M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : WEC

The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 21.3%. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : WEC

The primary concerns for WEC are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

HTO profiles as a value stock while WEC is a mature play — different risk/reward profiles.

WEC carries more volatility with a beta of 0.53 — expect wider price swings.

WEC is growing revenue faster at 11.1% — sustainability is the question.

HTO generates stronger free cash flow (-239M), providing more financial flexibility.

Bottom Line

WEC scores higher overall (60/100 vs 57/100), backed by strong 15.9% margins and 11.1% revenue growth. HTO offers better value entry with a 32.7% margin of safety. 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.

WEC Energy Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

WEC Energy Group, based in Milwaukee, Wisconsin, provides electricity and natural gas to 4.4 million customers across four states.

Want to dig deeper into these stocks?