WallStSmart

California Water Service Group (CWT)vsUbiquiti Networks Inc (UI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ubiquiti Networks Inc generates 194% more annual revenue ($2.97B vs $1.01B). UI leads profitability with a 29.9% profit margin vs 11.8%. UI appears more attractively valued with a PEG of 1.10. UI earns a higher WallStSmart Score of 71/100 (B).

CWT

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.7Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

UI

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 10.0Value: 3.3Quality: 7.3
Piotroski: 5/9Altman Z: 5.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+30.3%)

Margin of Safety

+30.3%

Fair Value

$63.31

Current Price

$43.03

$20.28 discount

UndervaluedFair: $63.31Overvalued
UISignificantly Overvalued (-85.1%)

Margin of Safety

-85.1%

Fair Value

$385.30

Current Price

$1028.31

$643.01 premium

UndervaluedFair: $385.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

UI6 strengths · Avg: 9.8/10
Return on EquityProfitability
136.1%10/10

Every $100 of equity generates 136 in profit

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Revenue GrowthGrowth
35.8%10/10

Revenue surging 35.8% year-over-year

EPS GrowthGrowth
70.8%10/10

Earnings expanding 70.8% YoY

Altman Z-ScoreHealth
5.1410/10

Safe zone — low bankruptcy risk

Market CapQuality
$61.72B9/10

Large-cap with strong market position

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

EPS GrowthGrowth
-69.3%2/10

Earnings declined 69.3%

UI2 concerns · Avg: 2.0/10
P/E RatioValuation
69.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
61.2x2/10

Trading at 61.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : UI

The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% demonstrates continued momentum.

Bear Case : CWT

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

Bear Case : UI

The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 69.5x leaves little room for execution misses.

Key Dynamics to Monitor

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

UI carries more volatility with a beta of 1.32 — expect wider price swings.

UI is growing revenue faster at 35.8% — sustainability is the question.

UI generates stronger free cash flow (259M), providing more financial flexibility.

Bottom Line

UI scores higher overall (71/100 vs 53/100), backed by strong 29.9% margins and 35.8% revenue growth. CWT offers better value entry with a 30.3% 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.

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Ubiquiti Networks Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.

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