H2O America (HTO)vsEssential Utilities Inc (WTRG)
HTO
H2O America
$62.66
+1.42%
UTILITIES · Cap: $2.57B
WTRG
Essential Utilities Inc
$40.04
+0.40%
UTILITIES · Cap: $11.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 208% more annual revenue ($2.55B vs $828.50M). WTRG leads profitability with a 21.8% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.68. WTRG earns a higher WallStSmart Score of 60/100 (C+).
HTO
Buy55
out of 100
Grade: C
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+30.1%
Fair Value
$74.38
Current Price
$62.66
$11.72 discount
Margin of Safety
+45.2%
Fair Value
$68.34
Current Price
$40.04
$28.30 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Strong operational efficiency at 36.1%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 23.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.8% and operating margin at 36.1%.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Bear Case : WTRG
The primary concerns for WTRG are Debt/Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HTO profiles as a value stock while WTRG is a mature play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.64 — expect wider price swings.
WTRG is growing revenue faster at 10.0% — sustainability is the question.
WTRG generates stronger free cash flow (-22M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 55/100), backed by strong 21.8% margins. HTO offers better value entry with a 30.1% 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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