American Water Works (AWK)vsAT&T Inc (TBB)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
TBB
AT&T Inc
$21.68
+0.46%
· Cap: $132.56B
Smart Verdict
WallStSmart Research — data-driven comparison
AWK leads profitability with a 21.2% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
TBB
Avoid25
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Intrinsic value data unavailable for TBB.
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
Attractively priced relative to earnings
Large-cap with strong market position
Generating 2.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
0.0% revenue growth
0.0% earnings growth
0.0% margin — thin
Operating margin of 0.0%
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 : TBB
The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : TBB
The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.
Key Dynamics to Monitor
AWK profiles as a mature stock while TBB is a value play — different risk/reward profiles.
AWK is growing revenue faster at 5.7% — sustainability is the question.
TBB generates stronger free cash flow (2.7B), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AWK scores higher overall (60/100 vs 25/100), backed by strong 21.2% margins. Both earn "Buy" and "Avoid" 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.
AT&T Inc
· · USA
AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.
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