WallStSmart

California Water Service Group (CWT)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 153% more annual revenue ($2.55B vs $1.01B). WTRG leads profitability with a 21.8% profit margin vs 11.8%. CWT appears more attractively valued with a PEG of 2.08. WTRG earns a higher WallStSmart Score of 60/100 (C+).

CWT

Buy

51

out of 100

Grade: C-

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

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.3%)

Margin of Safety

+21.3%

Fair Value

$56.07

Current Price

$45.20

$10.87 discount

UndervaluedFair: $56.07Overvalued
WTRGUndervalued (+45.6%)

Margin of Safety

+45.6%

Fair Value

$68.87

Current Price

$37.27

$31.60 discount

UndervaluedFair: $68.87Overvalued

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

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.084/10

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%

WTRG4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.592/10

Expensive relative to growth rate

EPS GrowthGrowth
-23.3%2/10

Earnings declined 23.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.8% and operating margin at 36.1%.

Bear Case : CWT

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

Bear Case : WTRG

The primary concerns for WTRG are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

WTRG carries more volatility with a beta of 0.65 — expect wider price swings.

WTRG is growing revenue faster at 10.0% — sustainability is the question.

WTRG generates stronger free cash flow (-22M), providing more financial flexibility.

Bottom Line

WTRG scores higher overall (60/100 vs 51/100), backed by strong 21.8% margins. CWT offers better value entry with a 21.3% 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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Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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