American Water Works Company, Inc. (AWK) vs H2O America (HTO)

American Water Works Company, Inc. and H2O America are both Utilities Regulated Water companies. American Water Works Company, Inc. is the larger, with a market value of $26.1B against $2.6B — 10.1× the size. H2O America trades at the lower P/E: 21.8× against 22.7×. American Water Works Company, Inc. grew revenue faster over the last twelve months: 6.92% against 5.04%. American Water Works Company, Inc. has the higher net margin (21.4% vs 12.9%) and the higher return on invested capital (4.70% vs 3.06%). Both pay a dividend; H2O America yields more (2.58% vs 2.28%). Across the 22 metrics below, American Water Works Company, Inc. leads on 12 and H2O America on 10.

Valuation

Metric AWK HTO Utilities Regulated Water median
P/E 22.69 21.77 20.64
P/S 4.86 3.15 4.37
P/B 2.20 1.41 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 13.84 14.35 14.48
EV/Sales 7.56 5.30 6.20
Earnings yield 4.41% 4.59% 4.83%
Free cash flow yield (4.01%) (10.46%) (4.54%)

Profitability

Metric AWK HTO Utilities Regulated Water median
Gross margin 100.00% 60.99% 71.91%
Operating margin 36.94% 21.48% 29.22%
Net margin 21.35% 12.91% 20.19%
Free cash flow margin (19.49%) (32.90%) (19.49%)
Return on equity 10.10% 6.46% 9.00%
Return on assets 3.21% 2.08% 3.21%
Return on invested capital 4.70% 3.06% 4.08%

Growth

Metric AWK HTO Utilities Regulated Water median
Revenue growth (TTM) 6.92% 5.04% 6.92%
EPS growth (last fiscal year) 5.57% 1.74% —
Revenue growth, 5-year CAGR 6.36% 7.24% 7.24%
Net income growth, 5-year CAGR 9.40% 10.77% 9.40%

Health

Metric AWK HTO Utilities Regulated Water median
Debt to equity 1.24 1.03 0.93
Current ratio 0.52 1.67 1.01
Net debt to EBITDA 5.10 6.57 4.42

Dividend

Metric AWK HTO Utilities Regulated Water median
Dividend yield 2.28% 2.58% 2.27%
Payout ratio 0.56 0.51 0.55

Size

Metric AWK HTO Utilities Regulated Water median
Market cap 26.14b 2.60b 997.03m

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