American Water Works (AWK)vsTXNM Energy, Inc. (TXNM)
AWK
American Water Works
$125.05
-0.91%
UTILITIES · Cap: $24.64B
TXNM
TXNM Energy, Inc.
$58.99
-0.42%
UTILITIES · Cap: $6.56B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 138% more annual revenue ($5.21B vs $2.19B). AWK leads profitability with a 21.2% profit margin vs 6.7%. AWK appears more attractively valued with a PEG of 2.28. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
TXNM
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.77
Current Price
$125.05
$13.28 premium
Margin of Safety
-10.8%
Fair Value
$53.56
Current Price
$58.99
$5.43 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
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
4.6% revenue growth
ROE of 5.4% — below average capital efficiency
6.7% margin — thin
Weak financial health signals
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 : TXNM
The strongest argument for TXNM centers on Price/Book.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : TXNM
The primary concerns for TXNM are Revenue Growth, Return on Equity, Profit Margin. A P/E of 42.0x leaves little room for execution misses.
Key Dynamics to Monitor
AWK profiles as a mature stock while TXNM is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.63 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
TXNM generates stronger free cash flow (-160M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 49/100), backed by strong 21.2% margins. 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.
TXNM Energy, Inc.
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.
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