American States Water Company (AWR) vs Middlesex Water Company (MSEX)

American States Water Company and Middlesex Water Company are both Utilities Regulated Water companies. American States Water Company is the larger, with a market value of $3.3B against $997.0M — 3.3× the size. Middlesex Water Company trades at the lower P/E: 20.6× against 22.6×. American States Water Company grew revenue faster over the last twelve months: 13.2% against 5.26%. Middlesex Water Company has the higher net margin (23.2% vs 20.5%) and the lower return on invested capital (4.08% vs 6.91%). Both pay a dividend; Middlesex Water Company yields more (2.25% vs 2.21%). Across the 22 metrics below, American States Water Company leads on 13 and Middlesex Water Company on 9.

Valuation

Metric AWR MSEX Utilities Regulated Water median
P/E 22.62 20.57 20.64
P/S 4.67 4.83 4.37
P/B 2.90 1.91 1.91
Price to free cash flow 157.02 n/m —
EV/EBITDA 15.17 15.13 14.48
EV/Sales 5.94 6.78 6.20
Earnings yield 4.42% 4.86% 4.83%
Free cash flow yield 0.64% (4.07%) (4.54%)

Profitability

Metric AWR MSEX Utilities Regulated Water median
Gross margin 77.65% 100.00% 71.91%
Operating margin 31.85% 29.22% 29.22%
Net margin 20.45% 23.22% 20.19%
Free cash flow margin 2.97% (19.67%) (19.49%)
Return on equity 13.62% 9.78% 9.00%
Return on assets 5.30% 3.50% 3.21%
Return on invested capital 6.91% 4.08% 4.08%

Growth

Metric AWR MSEX Utilities Regulated Water median
Revenue growth (TTM) 13.23% 5.26% 6.92%
EPS growth (last fiscal year) 6.31% (4.45%) —
Revenue growth, 5-year CAGR 6.15% 6.58% 7.24%
Net income growth, 5-year CAGR 8.58% 2.22% 9.40%

Health

Metric AWR MSEX Utilities Regulated Water median
Debt to equity 0.81 0.77 0.93
Current ratio 0.98 0.50 1.01
Net debt to EBITDA 3.62 4.42 4.42

Dividend

Metric AWR MSEX Utilities Regulated Water median
Dividend yield 2.21% 2.25% 2.27%
Payout ratio 0.50 0.59 0.55

Size

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

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