WallStSmart

American States Water Company (AWR)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 288% more annual revenue ($2.55B vs $658.07M). WTRG leads profitability with a 21.8% profit margin vs 19.8%. AWR appears more attractively valued with a PEG of 2.75. WTRG 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

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.4%)

Margin of Safety

-3.4%

Fair Value

$68.61

Current Price

$77.20

$8.59 premium

UndervaluedFair: $68.61Overvalued
WTRGUndervalued (+48.9%)

Margin of Safety

+48.9%

Fair Value

$73.19

Current Price

$37.47

$35.72 discount

UndervaluedFair: $73.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.8%8/10

Strong operational efficiency at 28.8%

WTRG4 strengths · Avg: 8.8/10
Operating MarginProfitability
36.0%10/10

Strong operational efficiency at 36.0%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

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

Weak financial health signals

PEG RatioValuation
2.752/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.2%2/10

Earnings declined 1.2%

Altman Z-ScoreHealth
1.172/10

Distress zone — elevated risk

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.572/10

Expensive relative to growth rate

EPS GrowthGrowth
-23.3%2/10

Earnings declined 23.3%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

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 : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 21.8% and operating margin at 36.0%.

Bear Case : AWR

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

Bear Case : WTRG

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

Key Dynamics to Monitor

WTRG carries more volatility with a beta of 0.66 — expect wider price swings.

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

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

Bottom Line

WTRG scores higher overall (60/100 vs 56/100), backed by strong 21.8% 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 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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Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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