American States Water Company (AWR)vsEssential Utilities Inc (WTRG)
AWR
American States Water Company
$84.44
-1.22%
UTILITIES · Cap: $3.31B
WTRG
Essential Utilities Inc
$42.27
-0.87%
UTILITIES · Cap: $11.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 268% more annual revenue ($2.57B vs $697.48M). WTRG leads profitability with a 21.6% 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 Buy68
out of 100
Grade: B-
WTRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-8.8%
Fair Value
$65.19
Current Price
$84.44
$19.25 premium
Margin of Safety
+44.8%
Fair Value
$67.77
Current Price
$42.27
$25.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 35.8%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 25.8% YoY
Strong operational efficiency at 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
Bear Case : AWR
The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-Score.
Bear Case : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AWR profiles as a mature stock while WTRG is a value play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.63 — expect wider price swings.
AWR is growing revenue faster at 11.2% — sustainability is the question.
AWR generates stronger free cash flow (-4M), providing more financial flexibility.
Bottom Line
AWR scores higher overall (68/100 vs 56/100), backed by strong 20.5% margins and 11.2% revenue growth. WTRG offers better value entry with a 44.8% margin of safety. 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.
Visit Website →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.
Visit Website →Compare with Other UTILITIES - REGULATED WATER Stocks
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