Artesian Resources Corporation (ARTNA) vs Middlesex Water Company (MSEX)

Artesian Resources Corporation and Middlesex Water Company are both Utilities Regulated Water companies. Middlesex Water Company is the larger, with a market value of $997.0M against $344.3M — 2.9× the size. Artesian Resources Corporation trades at the lower P/E: 14.5× against 20.6×. Artesian Resources Corporation grew revenue faster over the last twelve months: 5.90% against 5.26%. Middlesex Water Company has the higher net margin (23.2% vs 20.2%) and the lower return on invested capital (4.08% vs 4.24%). Both pay a dividend; Artesian Resources Corporation yields more (4.00% vs 2.25%). Across the 21 metrics below, Artesian Resources Corporation leads on 15 and Middlesex Water Company on 6.

Valuation

Metric ARTNA MSEX Utilities Regulated Water median
P/E 14.46 20.57 20.64
P/S 2.94 4.83 4.37
P/B 1.34 1.91 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 12.25 15.13 14.48
EV/Sales 4.43 6.78 6.20
Earnings yield 6.92% 4.86% 4.83%
Free cash flow yield (5.26%) (4.07%) (4.54%)

Profitability

Metric ARTNA MSEX Utilities Regulated Water median
Gross margin 100.00% 100.00% 71.91%
Operating margin 25.03% 29.22% 29.22%
Net margin 20.19% 23.22% 20.19%
Free cash flow margin (15.44%) (19.67%) (19.49%)
Return on equity 9.42% 9.78% 9.00%
Return on assets 2.77% 3.50% 3.21%
Return on invested capital 4.24% 4.08% 4.08%

Growth

Metric ARTNA MSEX Utilities Regulated Water median
Revenue growth (TTM) 5.90% 5.26% 6.92%
EPS growth (last fiscal year) 11.62% (4.45%) —
Revenue growth, 5-year CAGR 5.08% 6.58% 7.24%
Net income growth, 5-year CAGR 6.30% 2.22% 9.40%

Health

Metric ARTNA MSEX Utilities Regulated Water median
Debt to equity 0.72 0.77 0.93
Current ratio 1.01 0.50 1.01
Net debt to EBITDA 4.34 4.42 4.42

Dividend

Metric ARTNA MSEX Utilities Regulated Water median
Dividend yield 4.00% 2.25% 2.27%
Payout ratio 0.64 0.59 0.55

Size

Metric ARTNA MSEX Utilities Regulated Water median
Market cap 344.27m 997.03m 997.03m

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