American Water Works (AWK)vsUnitedHealth Group Incorporated (UNH)
AWK
American Water Works
$125.68
-0.29%
UTILITIES · Cap: $24.87B
UNH
UnitedHealth Group Incorporated
$367.28
+0.94%
HEALTHCARE · Cap: $336.72B
Smart Verdict
WallStSmart Research — data-driven comparison
UnitedHealth Group Incorporated generates 8540% more annual revenue ($449.71B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 2.7%. UNH appears more attractively valued with a PEG of 1.28. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
UNH
Buy54
out of 100
Grade: C-
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
+43.1%
Fair Value
$639.67
Current Price
$367.28
$272.39 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
Mega-cap, among the largest globally
Generating 8.1B 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
Moderate valuation
2.0% revenue growth
0.7% earnings growth
2.7% margin — thin
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 : UNH
The strongest argument for UNH centers on Market Cap, Free Cash Flow. PEG of 1.28 suggests the stock is reasonably priced for its growth.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : UNH
The primary concerns for UNH are P/E Ratio, Revenue Growth, EPS Growth. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
AWK profiles as a mature stock while UNH is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.73 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
UNH generates stronger free cash flow (8.1B), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 54/100), backed by strong 21.2% margins. UNH offers better value entry with a 43.1% margin of safety. Both earn "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.
UnitedHealth Group Incorporated
HEALTHCARE · HEALTHCARE PLANS · USA
UnitedHealth Group Incorporated is an American for-profit multinational managed healthcare and insurance company based in Minnetonka, Minnesota. It offers health care products and insurance services. In 2020, it was the second-largest healthcare company (behind CVS Health) by revenue with $257.1 billion, and the largest insurance company by net premiums. UnitedHealthcare revenues comprise 80% of the Group's overall revenue.
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