WallStSmart

Restaurant Brands International Inc (QSR)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Restaurant Brands International Inc generates 281% more annual revenue ($9.43B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 8.2%. QSR appears more attractively valued with a PEG of 0.94. WTRG earns a higher WallStSmart Score of 60/100 (C+).

QSR

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.93

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QSRUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$104.80

Current Price

$77.20

$27.60 discount

UndervaluedFair: $104.80Overvalued
WTRGUndervalued (+47.4%)

Margin of Safety

+47.4%

Fair Value

$71.13

Current Price

$37.54

$33.59 discount

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QSR3 strengths · Avg: 8.3/10
Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

PEG RatioValuation
0.948/10

Growing faster than its price suggests

Operating MarginProfitability
26.4%8/10

Strong operational efficiency at 26.4%

WTRG5 strengths · Avg: 8.6/10
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

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

QSR3 concerns · Avg: 2.7/10
P/E RatioValuation
30.4x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-57.4%2/10

Earnings declined 57.4%

Altman Z-ScoreHealth
0.932/10

Distress zone — elevated risk

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

Weak financial health signals

PEG RatioValuation
3.622/10

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 : QSR

The strongest argument for QSR centers on Return on Equity, PEG Ratio, Operating Margin. PEG of 0.94 suggests the stock is reasonably priced for its growth.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : QSR

The primary concerns for QSR are P/E Ratio, EPS Growth, Altman Z-Score.

Bear Case : WTRG

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

Key Dynamics to Monitor

QSR profiles as a value stock while WTRG is a growth play — different risk/reward profiles.

WTRG carries more volatility with a beta of 0.77 — expect wider price swings.

WTRG is growing revenue faster at 15.7% — sustainability is the question.

QSR generates stronger free cash flow (441M), providing more financial flexibility.

Bottom Line

WTRG scores higher overall (60/100 vs 59/100), backed by strong 24.9% margins and 15.7% revenue growth. QSR offers better value entry with a 32.5% 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.

Restaurant Brands International Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.

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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