H2O America (HTO)vsMiddlesex Water Company (MSEX)
HTO
H2O America
$61.80
+1.25%
UTILITIES · Cap: $2.41B
MSEX
Middlesex Water Company
$55.38
-1.49%
UTILITIES · Cap: $1.06B
Smart Verdict
WallStSmart Research — data-driven comparison
H2O America generates 302% more annual revenue ($828.50M vs $206.14M). MSEX leads profitability with a 23.3% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.68. MSEX earns a higher WallStSmart Score of 65/100 (C+).
HTO
Buy55
out of 100
Grade: C
MSEX
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.4%
Fair Value
$73.58
Current Price
$61.80
$11.78 discount
Margin of Safety
-20.9%
Fair Value
$42.78
Current Price
$55.38
$12.60 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Strong operational efficiency at 34.4%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 31.6% YoY
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : MSEX
The strongest argument for MSEX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 23.3% and operating margin at 34.4%. Revenue growth of 14.3% demonstrates continued momentum.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Bear Case : MSEX
The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HTO profiles as a value stock while MSEX is a mature play — different risk/reward profiles.
MSEX carries more volatility with a beta of 0.73 — expect wider price swings.
MSEX is growing revenue faster at 14.3% — sustainability is the question.
MSEX generates stronger free cash flow (-4M), providing more financial flexibility.
Bottom Line
MSEX scores higher overall (65/100 vs 55/100), backed by strong 23.3% margins and 14.3% revenue growth. HTO offers better value entry with a 29.4% 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
Middlesex Water Company
UTILITIES · UTILITIES - REGULATED WATER · USA
Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.
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