WallStSmart

California Water Service Group (CWT)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waters Corporation generates 213% more annual revenue ($3.17B vs $1.01B). WAT leads profitability with a 20.3% profit margin vs 11.8%. WAT appears more attractively valued with a PEG of 1.34. WAT earns a higher WallStSmart Score of 60/100 (C).

CWT

Buy

53

out of 100

Grade: C-

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

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 5.7Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
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

Intrinsic value data unavailable for WAT.

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

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

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%

WAT3 concerns · Avg: 3.3/10
P/E RatioValuation
28.6x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : WAT

The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : CWT

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

Bear Case : WAT

The primary concerns for WAT are P/E Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

CWT profiles as a value stock while WAT is a mature play — different risk/reward profiles.

WAT carries more volatility with a beta of 1.20 — expect wider price swings.

WAT is growing revenue faster at 6.8% — sustainability is the question.

WAT generates stronger free cash flow (126M), providing more financial flexibility.

Bottom Line

WAT scores higher overall (60/100 vs 53/100), backed by strong 20.3% margins. CWT offers better value entry with a 30.3% 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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Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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