WallStSmart

American Water Works (AWK)vsCalifornia Water Service Group (CWT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 414% more annual revenue ($5.14B vs $1.00B). AWK leads profitability with a 21.6% profit margin vs 12.8%. CWT appears more attractively valued with a PEG of 2.00. AWK earns a higher WallStSmart Score of 62/100 (C+).

AWK

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

CWT

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 7.3Quality: 2.8
Piotroski: 1/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-219.7%)

Margin of Safety

-219.7%

Fair Value

$38.69

Current Price

$134.59

$95.90 premium

UndervaluedFair: $38.69Overvalued
CWTSignificantly Overvalued (-202.0%)

Margin of Safety

-202.0%

Fair Value

$14.62

Current Price

$43.94

$29.32 premium

UndervaluedFair: $14.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

AWK4 concerns · Avg: 3.3/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-385.00M2/10

Negative free cash flow — burning cash

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-100.0%2/10

Revenue declined 100.0%

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 21.6% and operating margin at 32.2%.

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, EPS Growth, 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 declining play — different risk/reward profiles.

AWK carries more volatility with a beta of 0.76 — expect wider price swings.

AWK is growing revenue faster at 5.8% — sustainability is the question.

CWT generates stronger free cash flow (-104M), providing more financial flexibility.

Bottom Line

AWK scores higher overall (62/100 vs 47/100), backed by strong 21.6% margins. 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.

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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