WallStSmart

AT&T Inc (TBB)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WTRG leads profitability with a 24.9% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. WTRG earns a higher WallStSmart Score of 60/100 (C+).

TBB

Avoid

25

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.87

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 TBB.

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

TBB3 strengths · Avg: 9.0/10
P/E RatioValuation
4.2x10/10

Attractively priced relative to earnings

Market CapQuality
$132.56B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.68B8/10

Generating 2.7B in free cash flow

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

TBB4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

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 : TBB

The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.

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 : TBB

The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.

Bear Case : WTRG

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

Key Dynamics to Monitor

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

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

TBB generates stronger free cash flow (2.7B), providing more financial flexibility.

Monitor sector industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WTRG scores higher overall (60/100 vs 25/100), backed by strong 24.9% margins and 15.7% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AT&T Inc

· · USA

AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.

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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