American Water Works (AWK)vsCalifornia Water Service Group (CWT)
AWK
American Water Works
$139.79
-0.93%
UTILITIES · Cap: $26.82B
CWT
California Water Service Group
$47.15
-1.40%
UTILITIES · Cap: $2.87B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 401% more annual revenue ($5.28B vs $1.05B). AWK leads profitability with a 21.3% profit margin vs 12.6%. CWT appears more attractively valued with a PEG of 2.22. CWT earns a higher WallStSmart Score of 67/100 (B-).
AWK
Buy64
out of 100
Grade: C+
CWT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.1%
Fair Value
$101.28
Current Price
$139.79
$38.51 premium
Margin of Safety
+21.0%
Fair Value
$55.89
Current Price
$47.15
$8.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Reasonable price relative to book value
Strong operational efficiency at 28.2%
16.5% revenue growth
Earnings expanding 31.4% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
ROE of 6.7% — below average capital efficiency
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : CWT
The strongest argument for CWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : CWT
The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
AWK profiles as a mature stock while CWT is a growth play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.57 — expect wider price swings.
CWT is growing revenue faster at 16.5% — sustainability is the question.
CWT generates stronger free cash flow (-83M), providing more financial flexibility.
Bottom Line
CWT scores higher overall (67/100 vs 64/100) and 16.5% 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.
California Water Service Group
UTILITIES · UTILITIES - REGULATED WATER · USA
California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.
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