H2O America (HTO)vsYum! Brands Inc (YUM)
HTO
H2O America
$57.60
-0.66%
UTILITIES · Cap: $2.37B
YUM
Yum! Brands Inc
$156.02
+1.38%
CONSUMER CYCLICAL · Cap: $43.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 940% more annual revenue ($8.49B vs $816.28M). YUM leads profitability with a 20.5% profit margin vs 12.9%. YUM appears more attractively valued with a PEG of 1.96. YUM earns a higher WallStSmart Score of 65/100 (C+).
HTO
Buy57
out of 100
Grade: C
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+32.5%
Fair Value
$76.99
Current Price
$57.60
$19.39 discount
Margin of Safety
-77.2%
Fair Value
$89.76
Current Price
$156.02
$66.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
HTO profiles as a value stock while YUM is a growth play — different risk/reward profiles.
YUM carries more volatility with a beta of 0.66 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
YUM generates stronger free cash flow (341M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 57/100), backed by strong 20.5% margins and 15.2% revenue growth. HTO offers better value entry with a 32.5% 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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