California Water Service Group (CWT)vsSouthwest Gas Holdings Inc (SWX)
CWT
California Water Service Group
$42.24
-6.92%
UTILITIES · Cap: $2.72B
SWX
Southwest Gas Holdings Inc
$91.90
+0.21%
UTILITIES · Cap: $6.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Southwest Gas Holdings Inc generates 94% more annual revenue ($1.94B vs $1.00B). SWX leads profitability with a 22.7% profit margin vs 12.8%. CWT appears more attractively valued with a PEG of 2.12. SWX earns a higher WallStSmart Score of 57/100 (C).
CWT
Hold47
out of 100
Grade: D+
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.8%
Fair Value
$62.85
Current Price
$42.24
$20.61 discount
Margin of Safety
-18.3%
Fair Value
$72.67
Current Price
$91.90
$19.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
ROE of 7.7% — below average capital efficiency
Weak financial health signals
Revenue declined 1.0%
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
Comparative Analysis Report
WallStSmart ResearchBull Case : CWT
The strongest argument for CWT centers on Price/Book.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
Bear Case : CWT
The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
CWT carries more volatility with a beta of 0.61 — expect wider price swings.
CWT is growing revenue faster at -1.0% — sustainability is the question.
CWT generates stronger free cash flow (-104M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SWX scores higher overall (57/100 vs 47/100), backed by strong 22.7% margins. CWT offers better value entry with a 29.8% margin of safety. Both earn "Buy" 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.
Visit Website →Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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