WallStSmart

Spire Inc (SR)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Spire Inc generates 4% more annual revenue ($2.57B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 11.1%. SR appears more attractively valued with a PEG of 2.46. SR earns a higher WallStSmart Score of 63/100 (C+).

SR

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.5Value: 6.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.57

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

SRUndervalued (+25.3%)

Margin of Safety

+25.3%

Fair Value

$117.83

Current Price

$89.73

$28.10 discount

UndervaluedFair: $117.83Overvalued
WTRGUndervalued (+47.6%)

Margin of Safety

+47.6%

Fair Value

$71.49

Current Price

$39.49

$32.00 discount

UndervaluedFair: $71.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SR2 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.4%8/10

Strong operational efficiency at 23.4%

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
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

SR4 concerns · Avg: 2.8/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Debt/EquityHealth
1.563/10

Elevated debt levels

Free Cash FlowQuality
$-121.80M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.572/10

Distress zone — elevated risk

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

Weak financial health signals

PEG RatioValuation
3.772/10

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 : SR

The strongest argument for SR centers on Price/Book, Operating Margin. Revenue growth of 13.9% demonstrates continued momentum.

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 : SR

The primary concerns for SR are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.56 is elevated, increasing financial risk.

Bear Case : WTRG

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

Key Dynamics to Monitor

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

WTRG carries more volatility with a beta of 0.77 — expect wider price swings.

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

SR generates stronger free cash flow (-122M), providing more financial flexibility.

Bottom Line

SR scores higher overall (63/100 vs 60/100) and 13.9% revenue growth. WTRG offers better value entry with a 47.6% 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.

Spire Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

Spire Inc. engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas in the United States. The company is headquartered in St. Louis, Missouri.

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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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