American Water Works (AWK)vsCalifornia Water Service Group (CWT)
AWK
American Water Works
$124.47
+1.82%
UTILITIES · Cap: $24.67B
CWT
California Water Service Group
$45.20
+1.28%
UTILITIES · Cap: $2.73B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 415% more annual revenue ($5.21B vs $1.01B). AWK leads profitability with a 21.2% profit margin vs 11.8%. CWT appears more attractively valued with a PEG of 2.08. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
CWT
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.5%
Fair Value
$101.00
Current Price
$124.47
$23.47 premium
Margin of Safety
+21.3%
Fair Value
$56.07
Current Price
$45.20
$10.87 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Earnings declined 4.8%
Expensive relative to growth rate
ROE of 6.7% — below average capital efficiency
Weak financial health signals
Earnings declined 69.3%
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 21.2% and operating margin at 33.2%.
Bull Case : CWT
The strongest argument for CWT centers on Price/Book.
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 value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.61 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
CWT generates stronger free cash flow (-80M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 51/100), backed by strong 21.2% margins. CWT offers better value entry with a 21.3% margin of safety. 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.
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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