American Water Works (AWK)vsTE Connectivity Ltd (TEL)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
TEL
TE Connectivity Ltd
$216.17
+4.46%
TECHNOLOGY · Cap: $59.92B
Smart Verdict
WallStSmart Research — data-driven comparison
TE Connectivity Ltd generates 259% more annual revenue ($18.70B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 15.5%. TEL appears more attractively valued with a PEG of 1.08. TEL earns a higher WallStSmart Score of 76/100 (B+).
AWK
Buy60
out of 100
Grade: C
TEL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.75
Current Price
$125.68
$13.93 premium
Margin of Safety
-60.4%
Fair Value
$142.48
Current Price
$216.17
$73.69 premium
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
Earnings expanding 7150.0% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
No major concerns identified
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 : TEL
The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : TEL
No major red flags identified for TEL, but monitor valuation.
Key Dynamics to Monitor
TEL carries more volatility with a beta of 1.18 — expect wider price swings.
TEL is growing revenue faster at 14.5% — sustainability is the question.
TEL generates stronger free cash flow (677M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TEL scores higher overall (76/100 vs 60/100), backed by strong 15.5% margins and 14.5% revenue growth. Both earn "Strong 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.
TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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