American States Water Company (AWR) vs H2O America (HTO)

American States Water Company and H2O America are both Utilities Regulated Water companies. American States Water Company is the larger, with a market value of $3.3B against $2.6B — 1.3× the size. H2O America trades at the lower P/E: 21.8× against 22.6×. American States Water Company grew revenue faster over the last twelve months: 13.2% against 5.04%. American States Water Company has the higher net margin (20.5% vs 12.9%) and the higher return on invested capital (6.91% vs 3.06%). Both pay a dividend; H2O America yields more (2.58% vs 2.21%). Across the 22 metrics below, American States Water Company leads on 12 and H2O America on 10.

Valuation

Metric AWR HTO Utilities Regulated Water median
P/E 22.62 21.77 20.64
P/S 4.67 3.15 4.37
P/B 2.90 1.41 1.91
Price to free cash flow 157.02 n/m —
EV/EBITDA 15.17 14.35 14.48
EV/Sales 5.94 5.30 6.20
Earnings yield 4.42% 4.59% 4.83%
Free cash flow yield 0.64% (10.46%) (4.54%)

Profitability

Metric AWR HTO Utilities Regulated Water median
Gross margin 77.65% 60.99% 71.91%
Operating margin 31.85% 21.48% 29.22%
Net margin 20.45% 12.91% 20.19%
Free cash flow margin 2.97% (32.90%) (19.49%)
Return on equity 13.62% 6.46% 9.00%
Return on assets 5.30% 2.08% 3.21%
Return on invested capital 6.91% 3.06% 4.08%

Growth

Metric AWR HTO Utilities Regulated Water median
Revenue growth (TTM) 13.23% 5.04% 6.92%
EPS growth (last fiscal year) 6.31% 1.74% —
Revenue growth, 5-year CAGR 6.15% 7.24% 7.24%
Net income growth, 5-year CAGR 8.58% 10.77% 9.40%

Health

Metric AWR HTO Utilities Regulated Water median
Debt to equity 0.81 1.03 0.93
Current ratio 0.98 1.67 1.01
Net debt to EBITDA 3.62 6.57 4.42

Dividend

Metric AWR HTO Utilities Regulated Water median
Dividend yield 2.21% 2.58% 2.27%
Payout ratio 0.50 0.51 0.55

Size

Metric AWR HTO Utilities Regulated Water median
Market cap 3.27b 2.60b 997.03m

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