WallStSmart

H2O America (HTO)vsPure Cycle Corporation (PCYO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H2O America generates 2564% more annual revenue ($816.28M vs $30.64M). PCYO leads profitability with a 45.8% profit margin vs 12.9%. PCYO trades at a lower P/E of 18.3x. HTO earns a higher WallStSmart Score of 57/100 (C).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 4.7Quality: 4.0
Piotroski: 1/9Altman Z: 0.68

PCYO

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 5.3Quality: 7.0
Piotroski: 3/9Altman Z: 4.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+14.5%)

Margin of Safety

+14.5%

Fair Value

$60.78

Current Price

$57.43

$3.35 discount

UndervaluedFair: $60.78Overvalued

Intrinsic value data unavailable for PCYO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
45.8%10/10

Keeps 46 of every $100 in revenue as profit

EPS GrowthGrowth
52.8%10/10

Earnings expanding 52.8% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

Areas to Watch

HTO4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Debt/EquityHealth
1.023/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$255.74M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.51M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 45.8% and operating margin at 5.1%. Revenue growth of 29.4% demonstrates continued momentum.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, Debt/Equity.

Bear Case : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

HTO profiles as a value stock while PCYO is a growth play — different risk/reward profiles.

PCYO carries more volatility with a beta of 1.24 — expect wider price swings.

PCYO is growing revenue faster at 29.4% — sustainability is the question.

PCYO generates stronger free cash flow (-5M), providing more financial flexibility.

Bottom Line

HTO scores higher overall (57/100 vs 55/100). 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.

Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

Visit Website →

Want to dig deeper into these stocks?