WallStSmart

Middlesex Water Company (MSEX)vsEssential Utilities Inc (WTRG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 1146% more annual revenue ($2.57B vs $206.14M). MSEX leads profitability with a 23.3% profit margin vs 21.6%. WTRG appears more attractively valued with a PEG of 3.59. MSEX earns a higher WallStSmart Score of 65/100 (C+).

MSEX

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 3.3Quality: 3.0
Piotroski: 1/9Altman Z: 0.81

WTRG

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSEXSignificantly Overvalued (-20.9%)

Margin of Safety

-20.9%

Fair Value

$42.78

Current Price

$55.38

$12.60 premium

UndervaluedFair: $42.78Overvalued
WTRGUndervalued (+44.8%)

Margin of Safety

+44.8%

Fair Value

$67.77

Current Price

$42.27

$25.50 discount

UndervaluedFair: $67.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSEX4 strengths · Avg: 8.8/10
Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.6%8/10

Earnings expanding 31.6% YoY

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-4.24M2/10

Negative free cash flow — burning cash

WTRG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.213/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MSEX

The strongest argument for MSEX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 23.3% and operating margin at 34.4%. Revenue growth of 14.3% demonstrates continued momentum.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.

Bear Case : MSEX

The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : WTRG

The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

MSEX profiles as a mature stock while WTRG is a value play — different risk/reward profiles.

MSEX carries more volatility with a beta of 0.73 — expect wider price swings.

MSEX is growing revenue faster at 14.3% — sustainability is the question.

MSEX generates stronger free cash flow (-4M), providing more financial flexibility.

Bottom Line

MSEX scores higher overall (65/100 vs 56/100), backed by strong 23.3% margins and 14.3% revenue growth. WTRG offers better value entry with a 44.8% 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.

Middlesex Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.

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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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