WallStSmart

American Water Works (AWK)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Water Works generates 64% more annual revenue ($5.21B vs $3.17B). AWK leads profitability with a 21.2% profit margin vs 20.3%. WAT appears more attractively valued with a PEG of 1.34. WAT earns a higher WallStSmart Score of 60/100 (C).

AWK

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.7Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKOvervalued (-10.7%)

Margin of Safety

-10.7%

Fair Value

$111.75

Current Price

$125.68

$13.93 premium

UndervaluedFair: $111.75Overvalued

Intrinsic value data unavailable for WAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Areas to Watch

AWK4 concerns · Avg: 2.8/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-4.8%2/10

Earnings declined 4.8%

Free Cash FlowQuality
$-354.00M2/10

Negative free cash flow — burning cash

WAT3 concerns · Avg: 3.3/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull 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 : WAT

The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.34 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 : WAT

The primary concerns for WAT are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

WAT carries more volatility with a beta of 1.20 — expect wider price swings.

WAT is growing revenue faster at 6.8% — sustainability is the question.

WAT generates stronger free cash flow (126M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AWK scores higher overall (60/100 vs 60/100), backed by strong 21.2% margins. 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.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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