WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 276% more annual revenue ($2.55B vs $679.25M). WTRG leads profitability with a 21.8% profit margin vs 19.7%. AWR appears more attractively valued with a PEG of 2.80. AWR earns a higher WallStSmart Score of 62/100 (C+).

AWR

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.23

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-11.2%)

Margin of Safety

-11.2%

Fair Value

$63.81

Current Price

$77.66

$13.85 premium

UndervaluedFair: $63.81Overvalued
WTRGUndervalued (+45.6%)

Margin of Safety

+45.6%

Fair Value

$68.87

Current Price

$37.27

$31.60 discount

UndervaluedFair: $68.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 9.0/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

AWR2 concerns · Avg: 2.0/10
PEG RatioValuation
2.802/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

WTRG4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.592/10

Expensive relative to growth rate

EPS GrowthGrowth
-23.3%2/10

Earnings declined 23.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Price/Book. Profitability is solid with margins at 19.7% and operating margin at 30.9%. Revenue growth of 14.3% 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 21.8% and operating margin at 36.1%.

Bear Case : AWR

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

Bear Case : WTRG

The primary concerns for WTRG are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

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

AWR generates stronger free cash flow (23M), providing more financial flexibility.

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

Bottom Line

AWR scores higher overall (62/100 vs 60/100), backed by strong 19.7% margins and 14.3% revenue growth. WTRG offers better value entry with a 45.6% 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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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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