Artesian Resources Corporation (ARTNA) vs Pure Cycle Corporation (PCYO)

Artesian Resources Corporation and Pure Cycle Corporation are both Utilities Regulated Water companies. Artesian Resources Corporation is the larger, with a market value of $344.3M against $261.9M — 1.3× the size. Artesian Resources Corporation trades at the lower P/E: 14.5× against 17.8×. Pure Cycle Corporation grew revenue faster over the last twelve months: 22.9% against 5.90%. Pure Cycle Corporation has the higher net margin (43.7% vs 20.2%) and the higher return on invested capital (5.05% vs 4.24%). Across the 21 metrics below, Pure Cycle Corporation leads on 13 and Artesian Resources Corporation on 8.

Valuation

Metric ARTNA PCYO Utilities Regulated Water median
P/E 14.46 17.82 20.64
P/S 2.94 7.77 4.37
P/B 1.34 1.73 1.91
Price to free cash flow n/m 65.08 —
EV/EBITDA 12.25 17.76 14.48
EV/Sales 4.43 7.94 6.20
Earnings yield 6.92% 5.61% 4.83%
Free cash flow yield (5.26%) 1.54% (4.54%)

Profitability

Metric ARTNA PCYO Utilities Regulated Water median
Gross margin 100.00% 61.97% 71.91%
Operating margin 25.03% 37.67% 29.22%
Net margin 20.19% 43.66% 20.19%
Free cash flow margin (15.44%) 11.94% (19.49%)
Return on equity 9.42% 10.22% 9.00%
Return on assets 2.77% 8.99% 3.21%
Return on invested capital 4.24% 5.05% 4.08%

Growth

Metric ARTNA PCYO Utilities Regulated Water median
Revenue growth (TTM) 5.90% 22.88% 6.92%
EPS growth (last fiscal year) 11.62% 12.50% —
Revenue growth, 5-year CAGR 5.08% 0.18% 7.24%
Net income growth, 5-year CAGR 6.30% 14.20% 9.40%

Health

Metric ARTNA PCYO Utilities Regulated Water median
Debt to equity 0.72 0.09 0.93
Current ratio 1.01 1.53 1.01
Net debt to EBITDA 4.34 (1.52) 4.42

Dividend

Metric ARTNA PCYO Utilities Regulated Water median
Dividend yield 4.00% — 2.27%
Payout ratio 0.64 0.00 0.55

Size

Metric ARTNA PCYO Utilities Regulated Water median
Market cap 344.27m 261.94m 997.03m

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