H2O America (HTO)vsEssential Utilities Inc (WTRG)
HTO
H2O America
$61.80
+1.25%
UTILITIES · Cap: $2.41B
WTRG
Essential Utilities Inc
$42.27
-0.87%
UTILITIES · Cap: $11.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 210% more annual revenue ($2.57B vs $828.50M). WTRG leads profitability with a 21.6% profit margin vs 12.9%. HTO appears more attractively valued with a PEG of 2.68. WTRG earns a higher WallStSmart Score of 56/100 (C).
HTO
Buy55
out of 100
Grade: C
WTRG
Buy56
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
+44.8%
Fair Value
$67.77
Current Price
$42.27
$25.50 discount
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 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Bear Case : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
WTRG carries more volatility with a beta of 0.63 — expect wider price swings.
HTO is growing revenue faster at 6.2% — sustainability is the question.
WTRG generates stronger free cash flow (-51M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WTRG scores higher overall (56/100 vs 55/100), backed by strong 21.6% margins. 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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