Stem Inc (STEM)vsEssential Utilities Inc (WTRG)
STEM
Stem Inc
$10.70
+3.48%
UTILITIES · Cap: $96.73M
WTRG
Essential Utilities Inc
$39.49
-0.35%
UTILITIES · Cap: $11.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 1484% more annual revenue ($2.47B vs $156.27M). STEM leads profitability with a 88.2% profit margin vs 24.9%. WTRG earns a higher WallStSmart Score of 60/100 (C+).
STEM
Hold44
out of 100
Grade: D
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.9%
Fair Value
$52.09
Current Price
$10.70
$41.39 discount
Margin of Safety
+47.6%
Fair Value
$71.49
Current Price
$39.49
$32.00 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 88 of every $100 in revenue as profit
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -5921.0% — below average capital efficiency
Revenue declined 15.6%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : STEM
The strongest argument for STEM centers on Profit Margin. Profitability is solid with margins at 88.2% and operating margin at 8.3%.
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 : STEM
The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
STEM profiles as a declining stock while WTRG is a growth play — different risk/reward profiles.
STEM carries more volatility with a beta of 1.41 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
STEM generates stronger free cash flow (7M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 44/100), backed by strong 24.9% margins and 15.7% revenue growth. STEM offers better value entry with a 77.9% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Stem Inc
UTILITIES · UTILITIES - RENEWABLE · USA
Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, 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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