American Water Works Company, Inc. (AWK) vs American States Water Company (AWR)

American Water Works Company, Inc. and American States Water Company are both Utilities Regulated Water companies. American Water Works Company, Inc. is the larger, with a market value of $26.1B against $3.3B — 8.0× the size. American States Water Company trades at the lower P/E: 22.6× against 22.7×. American States Water Company grew revenue faster over the last twelve months: 13.2% against 6.92%. American Water Works Company, Inc. has the higher net margin (21.4% vs 20.5%) and the lower return on invested capital (4.70% vs 6.91%). Both pay a dividend; American Water Works Company, Inc. yields more (2.28% vs 2.21%). Across the 22 metrics below, American States Water Company leads on 14 and American Water Works Company, Inc. on 8.

Valuation

Metric AWK AWR Utilities Regulated Water median
P/E 22.69 22.62 20.64
P/S 4.86 4.67 4.37
P/B 2.20 2.90 1.91
Price to free cash flow n/m 157.02 —
EV/EBITDA 13.84 15.17 14.48
EV/Sales 7.56 5.94 6.20
Earnings yield 4.41% 4.42% 4.83%
Free cash flow yield (4.01%) 0.64% (4.54%)

Profitability

Metric AWK AWR Utilities Regulated Water median
Gross margin 100.00% 77.65% 71.91%
Operating margin 36.94% 31.85% 29.22%
Net margin 21.35% 20.45% 20.19%
Free cash flow margin (19.49%) 2.97% (19.49%)
Return on equity 10.10% 13.62% 9.00%
Return on assets 3.21% 5.30% 3.21%
Return on invested capital 4.70% 6.91% 4.08%

Growth

Metric AWK AWR Utilities Regulated Water median
Revenue growth (TTM) 6.92% 13.23% 6.92%
EPS growth (last fiscal year) 5.57% 6.31% —
Revenue growth, 5-year CAGR 6.36% 6.15% 7.24%
Net income growth, 5-year CAGR 9.40% 8.58% 9.40%

Health

Metric AWK AWR Utilities Regulated Water median
Debt to equity 1.24 0.81 0.93
Current ratio 0.52 0.98 1.01
Net debt to EBITDA 5.10 3.62 4.42

Dividend

Metric AWK AWR Utilities Regulated Water median
Dividend yield 2.28% 2.21% 2.27%
Payout ratio 0.56 0.50 0.55

Size

Metric AWK AWR Utilities Regulated Water median
Market cap 26.14b 3.27b 997.03m

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