American Water Works (AWK)vsStem Inc (STEM)
AWK
American Water Works
$131.97
-0.53%
UTILITIES · Cap: $25.77B
STEM
Stem Inc
$10.70
+3.48%
UTILITIES · Cap: $96.73M
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 3189% more annual revenue ($5.14B vs $156.27M). STEM leads profitability with a 88.2% profit margin vs 21.6%. AWK earns a higher WallStSmart Score of 62/100 (C+).
AWK
Buy62
out of 100
Grade: C+
STEM
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-12.2%
Fair Value
$110.27
Current Price
$131.97
$21.70 premium
Margin of Safety
+77.9%
Fair Value
$52.09
Current Price
$10.70
$41.39 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.2%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Keeps 88 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Negative free cash flow — burning cash
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -5921.0% — below average capital efficiency
Revenue declined 15.6%
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 21.6% and operating margin at 32.2%.
Bull Case : STEM
The strongest argument for STEM centers on Profit Margin. Profitability is solid with margins at 88.2% and operating margin at 8.3%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, EPS Growth, Piotroski F-Score.
Bear Case : STEM
The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
AWK profiles as a mature stock while STEM is a declining play — different risk/reward profiles.
STEM carries more volatility with a beta of 1.41 — expect wider price swings.
AWK is growing revenue faster at 5.8% — sustainability is the question.
STEM generates stronger free cash flow (7M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (62/100 vs 44/100), backed by strong 21.6% margins. STEM offers better value entry with a 77.9% margin of safety. 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.
Stem Inc
UTILITIES · UTILITIES - RENEWABLE · USA
Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.
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