WallStSmart

H2O America (HTO)vsUSA Rare Earth, Inc. (USAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

H2O America generates 49583% more annual revenue ($816.28M vs $1.64M). HTO leads profitability with a 12.9% profit margin vs 0.0%. HTO earns a higher WallStSmart Score of 57/100 (C).

HTO

Buy

57

out of 100

Grade: C

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

USAR

Avoid

21

out of 100

Grade: F

Growth: 4.3Profit: 2.5Value: 5.0Quality: 5.3
Piotroski: 2/9Altman Z: -41.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.5%)

Margin of Safety

+32.5%

Fair Value

$76.99

Current Price

$57.60

$19.39 discount

UndervaluedFair: $76.99Overvalued

Intrinsic value data unavailable for USAR.

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%

USAR0 strengths · Avg: 0/10

No standout strengths identified

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
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

USAR4 concerns · Avg: 3.8/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

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

Bull Case : USAR

USAR has a balanced fundamental profile.

Bear Case : HTO

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

Bear Case : USAR

The primary concerns for USAR are Price/Book, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

USAR carries more volatility with a beta of 1.37 — expect wider price swings.

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

HTO generates stronger free cash flow (-49M), providing more financial flexibility.

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

Bottom Line

HTO scores higher overall (57/100 vs 21/100). Both earn "Buy" and "Avoid" 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.

USA Rare Earth, Inc.

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals. The company is headquartered in Stillwater, Oklahoma.

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