American States Water Company (AWR) vs Pure Cycle Corporation (PCYO)

American States Water Company and Pure Cycle Corporation are both Utilities Regulated Water companies. American States Water Company is the larger, with a market value of $3.4B against $254.0M — 13.5× the size. Pure Cycle Corporation trades at the lower P/E: 17.2× against 23.8×. Pure Cycle Corporation grew revenue faster over the last twelve months: 22.9% against 13.2%. Pure Cycle Corporation has the higher net margin (43.7% vs 20.5%) and the lower return on invested capital (5.05% vs 6.91%). Across the 22 metrics below, Pure Cycle Corporation leads on 15 and American States Water Company on 7.

Valuation

Metric AWR PCYO Utilities Regulated Water median
P/E 23.79 17.25 22.15
P/S 4.91 7.52 4.37
P/B 3.05 1.67 1.75
Price to free cash flow 165.10 62.98 —
EV/EBITDA 15.79 17.20 14.76
EV/Sales 6.18 7.69 6.19
Earnings yield 4.20% 5.80% 4.52%
Free cash flow yield 0.61% 1.59% (4.03%)

Profitability

Metric AWR PCYO Utilities Regulated Water median
Gross margin 77.65% 61.97% 74.78%
Operating margin 31.85% 37.67% 31.19%
Net margin 20.45% 43.66% 20.32%
Free cash flow margin 2.97% 11.94% (17.70%)
Return on equity 13.62% 10.22% 9.21%
Return on assets 5.30% 8.99% 3.34%
Return on invested capital 6.91% 5.05% 4.26%

Growth

Metric AWR PCYO Utilities Regulated Water median
Revenue growth (TTM) 13.23% 22.88% 8.39%
EPS growth (last fiscal year) 6.31% 12.50% (0.37%)
Revenue growth, 5-year CAGR 6.15% 0.18% 6.91%
Net income growth, 5-year CAGR 8.58% 14.20% 10.09%

Health

Metric AWR PCYO Utilities Regulated Water median
Debt to equity 0.81 0.09 0.84
Current ratio 0.98 1.53 1.00
Net debt to EBITDA 3.62 (1.52) 4.59

Dividend

Metric AWR PCYO Utilities Regulated Water median
Dividend yield 2.99% — 2.99%
Payout ratio 0.71 — 0.66

Size

Metric AWR PCYO Utilities Regulated Water median
Market cap 3.44b 253.99m 2.04b

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