WallStSmart

California Water Service Group (CWT)vsStem Inc (STEM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

California Water Service Group generates 540% more annual revenue ($1.00B vs $156.27M). STEM leads profitability with a 88.2% profit margin vs 12.8%. CWT earns a higher WallStSmart Score of 47/100 (D+).

CWT

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 6.0Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

STEM

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$62.85

Current Price

$42.24

$20.61 discount

UndervaluedFair: $62.85Overvalued
STEMUndervalued (+77.9%)

Margin of Safety

+77.9%

Fair Value

$52.09

Current Price

$10.70

$41.39 discount

UndervaluedFair: $52.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

STEM1 strengths · Avg: 10.0/10
Profit MarginProfitability
88.2%10/10

Keeps 88 of every $100 in revenue as profit

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

STEM4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$96.73M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-5921.0%2/10

ROE of -5921.0% — below average capital efficiency

Revenue GrowthGrowth
-15.6%2/10

Revenue declined 15.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : STEM

The strongest argument for STEM centers on Profit Margin. Profitability is solid with margins at 88.2% and operating margin at 8.3%.

Bear Case : CWT

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

Bear Case : STEM

The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

STEM carries more volatility with a beta of 1.41 — expect wider price swings.

CWT is growing revenue faster at -1.0% — sustainability is the question.

STEM generates stronger free cash flow (7M), providing more financial flexibility.

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

Bottom Line

CWT scores higher overall (47/100 vs 44/100). STEM offers better value entry with a 77.9% margin of safety. Both earn "Hold" and "Hold" 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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Stem Inc

UTILITIES · UTILITIES - RENEWABLE · USA

Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.

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