American Water Works (AWK)vsH2O America (HTO)
AWK
American Water Works
$125.05
-0.91%
UTILITIES · Cap: $24.64B
HTO
H2O America
$57.97
+1.42%
UTILITIES · Cap: $2.39B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 538% more annual revenue ($5.21B vs $816.28M). AWK leads profitability with a 21.2% profit margin vs 12.9%. AWK appears more attractively valued with a PEG of 2.28. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
HTO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.77
Current Price
$125.05
$13.28 premium
Margin of Safety
+32.5%
Fair Value
$76.99
Current Price
$57.97
$19.02 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
Strong operational efficiency at 21.5%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
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 21.2% and operating margin at 33.2%.
Bull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
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 0.63 — expect wider price swings.
HTO is growing revenue faster at 9.4% — sustainability is the question.
HTO generates stronger free cash flow (-49M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 57/100), backed by strong 21.2% margins. HTO offers better value entry with a 32.5% 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.
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