American Water Works (AWK)vsTarget Corporation (TGT)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
TGT
Target Corporation
$130.19
+1.06%
CONSUMER DEFENSIVE · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 1913% more annual revenue ($104.78B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 3.5%. AWK appears more attractively valued with a PEG of 2.30. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
TGT
Hold48
out of 100
Grade: D+
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
+33.2%
Fair Value
$171.51
Current Price
$130.19
$41.32 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
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B 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
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
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 : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
AWK profiles as a mature stock while TGT is a value play — different risk/reward profiles.
TGT carries more volatility with a beta of 1.03 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 48/100), backed by strong 21.2% margins. TGT offers better value entry with a 33.2% 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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