WallStSmart

Qnity Electronics, Inc (Q)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Qnity Electronics, Inc generates 92% more annual revenue ($4.75B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 14.6%. Q appears more attractively valued with a PEG of 2.91. WTRG earns a higher WallStSmart Score of 60/100 (C+).

Q

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 3.3Quality: 5.0

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QOvervalued (-9.0%)

Margin of Safety

-9.0%

Fair Value

$105.09

Current Price

$149.44

$44.35 premium

UndervaluedFair: $105.09Overvalued
WTRGUndervalued (+47.4%)

Margin of Safety

+47.4%

Fair Value

$71.13

Current Price

$37.54

$33.59 discount

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

Q1 strengths · Avg: 8.0/10
Operating MarginProfitability
20.4%8/10

Strong operational efficiency at 20.4%

WTRG5 strengths · Avg: 8.6/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

Q4 concerns · Avg: 2.3/10
Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

PEG RatioValuation
2.912/10

Expensive relative to growth rate

P/E RatioValuation
43.4x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-52.8%2/10

Earnings declined 52.8%

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : Q

The strongest argument for Q centers on Operating Margin.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : Q

The primary concerns for Q are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 43.4x leaves little room for execution misses.

Bear Case : WTRG

The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

Q profiles as a value stock while WTRG is a growth play — different risk/reward profiles.

WTRG is growing revenue faster at 15.7% — sustainability is the question.

Q generates stronger free cash flow (420M), providing more financial flexibility.

Monitor SEMICONDUCTOR EQUIPMENT & MATERIALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

WTRG scores higher overall (60/100 vs 49/100), backed by strong 24.9% margins and 15.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Qnity Electronics, Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.

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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