WallStSmart

American Water Works (AWK)vsAmerican States Water Company (AWR)

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Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 658% more annual revenue ($5.28B vs $697.48M). AWK leads profitability with a 21.3% profit margin vs 20.5%. AWK appears more attractively valued with a PEG of 2.36. AWR earns a higher WallStSmart Score of 68/100 (B-).

AWK

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59

AWR

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.23
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-22.1%)

Margin of Safety

-22.1%

Fair Value

$101.28

Current Price

$139.79

$38.51 premium

UndervaluedFair: $101.28Overvalued
AWROvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$65.19

Current Price

$84.44

$19.25 premium

UndervaluedFair: $65.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Profit MarginProfitability
21.3%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

AWR4 strengths · Avg: 8.8/10
Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.8%8/10

Earnings expanding 25.8% YoY

Areas to Watch

AWK4 concerns · Avg: 3.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-258.00M2/10

Negative free cash flow — burning cash

AWR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-3.60M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AWK

The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 40.7%.

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

AWK carries more volatility with a beta of 0.57 — expect wider price swings.

AWR is growing revenue faster at 11.2% — sustainability is the question.

AWR generates stronger free cash flow (-4M), providing more financial flexibility.

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

Bottom Line

AWR scores higher overall (68/100 vs 64/100), backed by strong 20.5% margins and 11.2% revenue growth. Both earn "Strong 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.

American Water Works

UTILITIES · UTILITIES - REGULATED WATER · USA

American Water is an American public utility company operating in the United States and Canada.

American States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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