WallStSmart

California Water Service Group (CWT)vsPure Cycle Corporation (PCYO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 3198% more annual revenue ($1.01B vs $30.64M). PCYO leads profitability with a 45.8% profit margin vs 11.8%. PCYO trades at a lower P/E of 18.3x. PCYO earns a higher WallStSmart Score of 55/100 (C).

CWT

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

PCYO

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 5.3Quality: 7.0
Piotroski: 3/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.4%)

Margin of Safety

+21.4%

Fair Value

$56.16

Current Price

$45.82

$10.34 discount

UndervaluedFair: $56.16Overvalued

Intrinsic value data unavailable for PCYO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
45.8%10/10

Keeps 46 of every $100 in revenue as profit

EPS GrowthGrowth
52.8%10/10

Earnings expanding 52.8% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.064/10

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

EPS GrowthGrowth
-69.3%2/10

Earnings declined 69.3%

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$255.74M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.51M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 45.8% and operating margin at 5.1%. Revenue growth of 29.4% demonstrates continued momentum.

Bear Case : CWT

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

Bear Case : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

CWT profiles as a value stock while PCYO is a growth play — different risk/reward profiles.

PCYO carries more volatility with a beta of 1.24 — expect wider price swings.

PCYO is growing revenue faster at 29.4% — sustainability is the question.

PCYO generates stronger free cash flow (-5M), providing more financial flexibility.

Bottom Line

PCYO scores higher overall (55/100 vs 51/100), backed by strong 45.8% margins and 29.4% revenue growth. CWT offers better value entry with a 21.4% 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.

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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Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

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