WallStSmart

Constellation Brands Inc Class A (STZ)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Constellation Brands Inc Class A generates 269% more annual revenue ($9.14B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 18.5%. STZ appears more attractively valued with a PEG of 2.83. WTRG earns a higher WallStSmart Score of 60/100 (C+).

STZ

Buy

56

out of 100

Grade: C

Growth: 2.0Profit: 8.5Value: 5.0Quality: 5.5
Piotroski: 6/9Altman Z: 1.95

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

Intrinsic value data unavailable for STZ.

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

STZ3 strengths · Avg: 8.3/10
Return on EquityProfitability
22.6%9/10

Every $100 of equity generates 23 in profit

P/E RatioValuation
15.9x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

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

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.954/10

Grey zone — moderate risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
2.832/10

Expensive relative to growth rate

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

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 : STZ

The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.

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 : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Bear Case : WTRG

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

Key Dynamics to Monitor

STZ profiles as a declining 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.

STZ generates stronger free cash flow (344M), providing more financial flexibility.

Bottom Line

WTRG scores higher overall (60/100 vs 56/100), backed by strong 24.9% margins and 15.7% 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?