Cadiz, Inc. (CDZI) vs H2O America (HTO)

Cadiz, Inc. and H2O America are both Utilities Regulated Water companies. H2O America is the larger, with a market value of $2.4B against $298.1M — 8.2× the size. Cadiz, Inc. has negative trailing earnings, so its P/E is not meaningful; H2O America trades at 20.5×. H2O America grew revenue faster over the last twelve months: 5.04% against −21.3%. H2O America has the higher net margin (12.9% vs −353.9%) and the higher return on invested capital (3.06% vs −15.1%). Across the 19 metrics below, H2O America leads on 15 and Cadiz, Inc. on 4.

Valuation

Metric CDZI HTO Utilities Regulated Water median
P/E n/m 20.47 20.54
P/S 24.30 2.96 4.31
P/B 61.72 1.33 1.92
Price to free cash flow n/m n/m —
EV/EBITDA n/m 13.84 14.63
EV/Sales 33.68 5.11 6.23
Earnings yield (14.62%) 4.89% 4.85%
Free cash flow yield (10.85%) (11.12%) (4.61%)

Profitability

Metric CDZI HTO Utilities Regulated Water median
Gross margin 27.14% 60.99% 71.91%
Operating margin (236.05%) 21.48% 29.22%
Net margin (353.94%) 12.91% 20.19%
Free cash flow margin (263.64%) (32.90%) (19.49%)
Return on equity (208.42%) 6.46% 9.00%
Return on assets (30.92%) 2.08% 3.21%
Return on invested capital (15.09%) 3.06% 4.08%

Growth

Metric CDZI HTO Utilities Regulated Water median
Revenue growth (TTM) (21.32%) 5.04% 6.92%
EPS growth (last fiscal year) 9.43% 1.74% 1.38%
Revenue growth, 5-year CAGR 97.64% 7.24% 7.24%
Net income growth, 5-year CAGR 0.00% 10.77% 9.40%

Health

Metric CDZI HTO Utilities Regulated Water median
Debt to equity 24.96 1.03 0.93
Current ratio 1.16 1.67 1.01
Net debt to EBITDA (4.12) 6.57 4.42

Dividend

Metric CDZI HTO Utilities Regulated Water median
Dividend yield — 2.97% 2.84%
Payout ratio — 0.61 0.57

Size

Metric CDZI HTO Utilities Regulated Water median
Market cap 298.06m 2.43b 1.00b

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