WallStSmart

American States Water Company (AWR)vsMiddlesex Water Company (MSEX)

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Smart Verdict

WallStSmart Research — data-driven comparison

American States Water Company generates 238% more annual revenue ($697.48M vs $206.14M). MSEX leads profitability with a 23.3% profit margin vs 20.5%. AWR appears more attractively valued with a PEG of 2.98. AWR earns a higher WallStSmart Score of 68/100 (B-).

AWR

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.23

MSEX

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 3.3Quality: 3.0
Piotroski: 1/9Altman Z: 0.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$65.19

Current Price

$84.44

$19.25 premium

UndervaluedFair: $65.19Overvalued
MSEXSignificantly Overvalued (-20.9%)

Margin of Safety

-20.9%

Fair Value

$42.78

Current Price

$55.38

$12.60 premium

UndervaluedFair: $42.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR4 strengths · Avg: 8.8/10
Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.8%8/10

Earnings expanding 25.8% YoY

MSEX4 strengths · Avg: 8.8/10
Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.6%8/10

Earnings expanding 31.6% YoY

Areas to Watch

AWR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-3.60M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-4.24M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% demonstrates continued momentum.

Bull Case : MSEX

The strongest argument for MSEX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 23.3% and operating margin at 34.4%. Revenue growth of 14.3% demonstrates continued momentum.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-Score.

Bear Case : MSEX

The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

MSEX carries more volatility with a beta of 0.73 — expect wider price swings.

MSEX is growing revenue faster at 14.3% — sustainability is the question.

AWR generates stronger free cash flow (-4M), providing more financial flexibility.

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

Bottom Line

AWR scores higher overall (68/100 vs 65/100), backed by strong 20.5% margins and 11.2% 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 States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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Middlesex Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.

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