WallStSmart

Pure Cycle Corporation (PCYO)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 8297% more annual revenue ($2.47B vs $29.47M). PCYO leads profitability with a 46.6% profit margin vs 24.9%. WTRG trades at a lower P/E of 18.1x. PCYO earns a higher WallStSmart Score of 61/100 (C+).

PCYO

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 8.3Quality: 8.0
Piotroski: 3/9Altman Z: 4.77

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 4.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PCYOUndervalued (+49.0%)

Margin of Safety

+49.0%

Fair Value

$20.75

Current Price

$9.88

$10.87 discount

UndervaluedFair: $20.75Overvalued
WTRGSignificantly Overvalued (-150.3%)

Margin of Safety

-150.3%

Fair Value

$14.96

Current Price

$39.65

$24.69 premium

UndervaluedFair: $14.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCYO6 strengths · Avg: 9.7/10
Profit MarginProfitability
46.6%10/10

Keeps 47 of every $100 in revenue as profit

Operating MarginProfitability
48.0%10/10

Strong operational efficiency at 48.0%

Revenue GrowthGrowth
58.8%10/10

Revenue surging 58.8% year-over-year

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

WTRG4 strengths · Avg: 8.8/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$249.10M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.13M2/10

Negative free cash flow — burning cash

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.782/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 46.6% and operating margin at 48.0%. Revenue growth of 58.8% 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 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score, Free Cash Flow.

Bear Case : WTRG

The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

PCYO carries more volatility with a beta of 1.32 — expect wider price swings.

PCYO is growing revenue faster at 58.8% — sustainability is the question.

PCYO generates stronger free cash flow (-1M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PCYO scores higher overall (61/100 vs 60/100), backed by strong 46.6% margins and 58.8% revenue growth. 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.

Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

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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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