California Water Service Group (CWT)vsH2O America (HTO)
CWT
California Water Service Group
$47.15
-1.40%
UTILITIES · Cap: $2.87B
HTO
H2O America
$61.80
+1.25%
UTILITIES · Cap: $2.41B
Smart Verdict
WallStSmart Research — data-driven comparison
California Water Service Group generates 27% more annual revenue ($1.05B vs $828.50M). HTO leads profitability with a 12.9% profit margin vs 12.6%. CWT appears more attractively valued with a PEG of 2.22. CWT earns a higher WallStSmart Score of 67/100 (B-).
CWT
Strong Buy67
out of 100
Grade: B-
HTO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.0%
Fair Value
$55.89
Current Price
$47.15
$8.74 discount
Margin of Safety
+29.4%
Fair Value
$73.58
Current Price
$61.80
$11.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 28.2%
16.5% revenue growth
Earnings expanding 31.4% YoY
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Areas to Watch
Expensive relative to growth rate
ROE of 6.7% — below average capital efficiency
Weak financial health signals
Negative free cash flow — burning cash
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CWT
The strongest argument for CWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum.
Bull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : CWT
The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
CWT profiles as a growth stock while HTO is a value play — different risk/reward profiles.
CWT carries more volatility with a beta of 0.48 — expect wider price swings.
CWT is growing revenue faster at 16.5% — sustainability is the question.
HTO generates stronger free cash flow (-63M), providing more financial flexibility.
Bottom Line
CWT scores higher overall (67/100 vs 55/100) and 16.5% revenue growth. HTO offers better value entry with a 29.4% 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.
California Water Service Group
UTILITIES · UTILITIES - REGULATED WATER · USA
California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.
Visit Website →H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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