American Water Works Company, Inc. (AWK) vs Middlesex Water Company (MSEX)

American Water Works Company, Inc. and Middlesex Water Company are both Utilities Regulated Water companies. American Water Works Company, Inc. is the larger, with a market value of $26.4B against $1.0B — 25.9× the size. Middlesex Water Company trades at the lower P/E: 21.1× against 23.4×. American Water Works Company, Inc. grew revenue faster over the last twelve months: 6.92% against 5.26%. Middlesex Water Company has the higher net margin (23.2% vs 21.4%) and the lower return on invested capital (4.08% vs 4.70%). Both pay a dividend; Middlesex Water Company yields more (2.64% vs 2.55%). Across the 21 metrics below, Middlesex Water Company leads on 11 and American Water Works Company, Inc. on 10.

Valuation

Metric AWK MSEX Utilities Regulated Water median
P/E 23.38 21.08 20.81
P/S 5.00 4.95 4.51
P/B 2.27 1.96 1.96
Price to free cash flow n/m n/m —
EV/EBITDA 14.11 15.40 14.30
EV/Sales 7.71 6.90 6.15
Earnings yield 4.28% 4.74% 4.80%
Free cash flow yield (3.90%) (3.97%) (4.40%)

Profitability

Metric AWK MSEX Utilities Regulated Water median
Gross margin 100.00% 100.00% 71.91%
Operating margin 36.94% 29.22% 29.22%
Net margin 21.35% 23.22% 20.19%
Free cash flow margin (19.49%) (19.67%) (19.49%)
Return on equity 10.10% 9.78% 9.00%
Return on assets 3.21% 3.50% 3.21%
Return on invested capital 4.70% 4.08% 4.08%

Growth

Metric AWK MSEX Utilities Regulated Water median
Revenue growth (TTM) 6.92% 5.26% 6.92%
EPS growth (last fiscal year) 5.57% (4.45%) 1.38%
Revenue growth, 5-year CAGR 6.36% 6.58% 7.24%
Net income growth, 5-year CAGR 9.40% 2.22% 9.40%

Health

Metric AWK MSEX Utilities Regulated Water median
Debt to equity 1.24 0.77 0.93
Current ratio 0.52 0.50 1.01
Net debt to EBITDA 5.10 4.42 4.42

Dividend

Metric AWK MSEX Utilities Regulated Water median
Dividend yield 2.55% 2.64% 2.81%
Payout ratio 0.60 0.56 0.57

Size

Metric AWK MSEX Utilities Regulated Water median
Market cap 26.44b 1.02b 1.02b

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