WallStSmart

H2O America (HTO)vsSuburban Propane Partners LP (SPH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Suburban Propane Partners LP generates 75% more annual revenue ($1.43B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs 9.3%. SPH appears more attractively valued with a PEG of 1.21. SPH earns a higher WallStSmart Score of 65/100 (B-).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

SPH

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 7.0Value: 8.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.7%)

Margin of Safety

+32.7%

Fair Value

$77.24

Current Price

$57.67

$19.57 discount

UndervaluedFair: $77.24Overvalued
SPHUndervalued (+50.9%)

Margin of Safety

+50.9%

Fair Value

$40.84

Current Price

$20.10

$20.74 discount

UndervaluedFair: $40.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

SPH4 strengths · Avg: 9.3/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
130.0%10/10

Earnings expanding 130.0% YoY

Return on EquityProfitability
22.7%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

HTO4 concerns · Avg: 2.8/10
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

PEG RatioValuation
2.622/10

Expensive relative to growth rate

Free Cash FlowQuality
$-239.11M2/10

Negative free cash flow — burning cash

SPH3 concerns · Avg: 2.3/10
Market CapQuality
$1.30B3/10

Smaller company, higher risk/reward

Revenue GrowthGrowth
-0.8%2/10

Revenue declined 0.8%

Free Cash FlowQuality
$-67.47M2/10

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 : SPH

The strongest argument for SPH centers on P/E Ratio, EPS Growth, Return on Equity. PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : SPH

The primary concerns for SPH are Market Cap, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

HTO carries more volatility with a beta of 0.41 — expect wider price swings.

HTO is growing revenue faster at 9.4% — sustainability is the question.

SPH generates stronger free cash flow (-67M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPH scores higher overall (65/100 vs 57/100). HTO offers better value entry with a 32.7% 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.

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.

Suburban Propane Partners LP

UTILITIES · UTILITIES - REGULATED GAS · USA

Suburban Propane Partners, LP, is engaged in the marketing and retail distribution of propane, fuel oil, and refined fuels. The company is headquartered in Whippany, New Jersey.

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