WallStSmart

American Water Works (AWK)vsMiddlesex Water Company (MSEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 2514% more annual revenue ($5.21B vs $199.11M). MSEX leads profitability with a 22.1% profit margin vs 21.2%. AWK appears more attractively valued with a PEG of 2.28. AWK earns a higher WallStSmart Score of 60/100 (C).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

MSEX

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 4.0Quality: 3.0
Piotroski: 1/9Altman Z: 0.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKOvervalued (-10.7%)

Margin of Safety

-10.7%

Fair Value

$111.77

Current Price

$125.05

$13.28 premium

UndervaluedFair: $111.77Overvalued
MSEXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$45.83

Current Price

$51.56

$5.73 premium

UndervaluedFair: $45.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

MSEX3 strengths · Avg: 8.3/10
Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

Areas to Watch

AWK4 concerns · Avg: 2.8/10
PEG RatioValuation
2.284/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

Free Cash FlowQuality
$-354.00M2/10

Negative free cash flow — burning cash

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$948.54M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-8.91M2/10

Negative free cash flow — burning cash

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 21.2% and operating margin at 33.2%.

Bull Case : MSEX

The strongest argument for MSEX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 22.1% and operating margin at 29.3%.

Bear Case : AWK

The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.

Bear Case : MSEX

The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

MSEX carries more volatility with a beta of 0.78 — expect wider price swings.

MSEX is growing revenue faster at 10.0% — sustainability is the question.

MSEX generates stronger free cash flow (-9M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AWK scores higher overall (60/100 vs 59/100), backed by strong 21.2% margins. 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.

Middlesex Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.

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