WallStSmart

H2O America (HTO)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 9840% more annual revenue ($81.14B vs $816.28M). WFC leads profitability with a 26.7% profit margin vs 12.9%. WFC appears more attractively valued with a PEG of 1.44. WFC earns a higher WallStSmart Score of 74/100 (B).

HTO

Buy

57

out of 100

Grade: C

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

WFC

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 6.3Quality: 5.8
Piotroski: 4/9Altman Z: 0.43
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 WFC.

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%

WFC6 strengths · Avg: 8.5/10
Market CapQuality
$247.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

P/E RatioValuation
12.5x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.4%8/10

Strong operational efficiency at 29.4%

Free Cash FlowQuality
$9.14B8/10

Generating 9.1B in free cash flow

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

WFC1 concerns · Avg: 2.0/10
Altman Z-ScoreHealth
0.432/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

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

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.4%. PEG of 1.44 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 : WFC

The primary concerns for WFC are Altman Z-Score.

Key Dynamics to Monitor

HTO profiles as a value stock while WFC is a mature play — different risk/reward profiles.

WFC carries more volatility with a beta of 1.06 — expect wider price swings.

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

WFC generates stronger free cash flow (9.1B), providing more financial flexibility.

Bottom Line

WFC scores higher overall (74/100 vs 57/100), backed by strong 26.7% margins. HTO offers better value entry with a 32.5% 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.

Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

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