WallStSmart

American States Water Company (AWR)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 5567% more annual revenue ($37.30B vs $658.07M). AWR leads profitability with a 19.8% profit margin vs 1.9%. AWR appears more attractively valued with a PEG of 2.71. AWR earns a higher WallStSmart Score of 56/100 (C).

AWR

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.17

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.58

Current Price

$75.84

$7.26 premium

UndervaluedFair: $68.58Overvalued
WBDUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$71.09

Current Price

$27.20

$43.89 discount

UndervaluedFair: $71.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.8%8/10

Strong operational efficiency at 28.8%

WBD4 strengths · Avg: 8.8/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.61B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

Areas to Watch

AWR4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.712/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.2%2/10

Earnings declined 1.2%

Free Cash FlowQuality
$-35.98M2/10

Negative free cash flow — burning cash

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

P/E RatioValuation
93.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.8% and operating margin at 28.8%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : AWR

The primary concerns for AWR are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 93.0x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

AWR profiles as a mature stock while WBD is a value play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.64 — expect wider price swings.

AWR is growing revenue faster at 14.8% — sustainability is the question.

WBD generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

AWR scores higher overall (56/100 vs 51/100), backed by strong 19.8% margins and 14.8% revenue growth. WBD offers better value entry with a 60.6% 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 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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Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

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