American Water Works (AWK)vsH2O America (HTO)
AWK
American Water Works
$135.31
+0.36%
UTILITIES · Cap: $26.66B
HTO
H2O America
$62.66
+1.42%
UTILITIES · Cap: $2.57B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 538% more annual revenue ($5.28B vs $828.50M). AWK leads profitability with a 21.3% profit margin vs 12.9%. AWK appears more attractively valued with a PEG of 2.60. AWK earns a higher WallStSmart Score of 64/100 (C+).
AWK
Buy64
out of 100
Grade: C+
HTO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.6%
Fair Value
$100.90
Current Price
$135.31
$34.41 premium
Margin of Safety
+30.1%
Fair Value
$74.38
Current Price
$62.66
$11.72 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 21.3%
Areas to Watch
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
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 : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : AWK
The primary concerns for AWK are Debt/Equity, Piotroski F-Score, PEG Ratio.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AWK profiles as a mature stock while HTO is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.60 — expect wider price swings.
HTO is growing revenue faster at 6.2% — sustainability is the question.
HTO generates stronger free cash flow (-49M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (64/100 vs 55/100), backed by strong 21.3% margins. HTO offers better value entry with a 30.1% 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
Compare with Other UTILITIES - REGULATED WATER Stocks
Want to dig deeper into these stocks?