WallStSmart

American States Water Company (AWR)vsWEC Energy Group Inc (WEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WEC Energy Group Inc generates 1389% more annual revenue ($9.80B vs $658.07M). AWR leads profitability with a 19.8% profit margin vs 15.9%. WEC appears more attractively valued with a PEG of 2.57. WEC earns a higher WallStSmart Score of 60/100 (C+).

AWR

Buy

56

out of 100

Grade: C

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

WEC

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.55

Current Price

$75.29

$6.74 premium

UndervaluedFair: $68.55Overvalued
WECSignificantly Overvalued (-40.2%)

Margin of Safety

-40.2%

Fair Value

$80.67

Current Price

$117.94

$37.27 premium

UndervaluedFair: $80.67Overvalued

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%

WEC2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

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

Weak financial health signals

PEG RatioValuation
2.862/10

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

WEC4 concerns · Avg: 2.0/10
PEG RatioValuation
2.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-32.5%2/10

Earnings declined 32.5%

Free Cash FlowQuality
$-905.40M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

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 : WEC

The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 21.3%. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : AWR

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

Bear Case : WEC

The primary concerns for WEC are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

AWR carries more volatility with a beta of 0.65 — expect wider price swings.

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

AWR generates stronger free cash flow (-36M), providing more financial flexibility.

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

Bottom Line

WEC scores higher overall (60/100 vs 56/100), backed by strong 15.9% margins and 11.1% revenue growth. 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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WEC Energy Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

WEC Energy Group, based in Milwaukee, Wisconsin, provides electricity and natural gas to 4.4 million customers across four states.

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