WallStSmart

California Water Service Group (CWT)vsMiddlesex Water Company (MSEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 411% more annual revenue ($1.05B vs $206.14M). MSEX leads profitability with a 23.3% 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 Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

MSEX

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 3.3Quality: 3.0
Piotroski: 1/9Altman Z: 0.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.4%)

Margin of Safety

+21.4%

Fair Value

$56.20

Current Price

$48.22

$7.98 discount

UndervaluedFair: $56.20Overvalued
MSEXSignificantly Overvalued (-21.1%)

Margin of Safety

-21.1%

Fair Value

$42.70

Current Price

$56.69

$13.99 premium

UndervaluedFair: $42.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT4 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
31.4%8/10

Earnings expanding 31.4% YoY

MSEX4 strengths · Avg: 8.8/10
Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.6%8/10

Earnings expanding 31.6% YoY

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-83.38M2/10

Negative free cash flow — burning cash

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$1.10B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-4.24M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : MSEX

The strongest argument for MSEX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 23.3% and operating margin at 34.4%. Revenue growth of 14.3% demonstrates continued momentum.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : MSEX

The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CWT profiles as a growth stock while MSEX is a mature play — different risk/reward profiles.

MSEX carries more volatility with a beta of 0.73 — expect wider price swings.

CWT is growing revenue faster at 16.5% — sustainability is the question.

MSEX generates stronger free cash flow (-4M), providing more financial flexibility.

Bottom Line

CWT scores higher overall (67/100 vs 65/100) and 16.5% revenue growth. 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.

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Middlesex Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.

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