Global Water Resources, Inc. (GWRS) vs H2O America (HTO)

Global Water Resources, Inc. and H2O America are both Utilities Regulated Water companies. H2O America is the larger, with a market value of $2.6B against $228.6M — 11.4× the size. H2O America trades at the lower P/E: 21.8× against 73.6×. Global Water Resources, Inc. grew revenue faster over the last twelve months: 10.8% against 5.04%. H2O America has the higher net margin (12.9% vs 5.22%) and the higher return on invested capital (3.06% vs 2.28%). Both pay a dividend; H2O America yields more (2.58% vs 2.31%). Across the 22 metrics below, H2O America leads on 16 and Global Water Resources, Inc. on 6.

Valuation

Metric GWRS HTO Utilities Regulated Water median
P/E 73.64 21.77 20.64
P/S 3.88 3.15 4.37
P/B 2.75 1.41 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 14.61 14.35 14.48
EV/Sales 6.20 5.30 6.20
Earnings yield 1.36% 4.59% 4.83%
Free cash flow yield (10.44%) (10.46%) (4.54%)

Profitability

Metric GWRS HTO Utilities Regulated Water median
Gross margin 71.91% 60.99% 71.91%
Operating margin 13.60% 21.48% 29.22%
Net margin 5.22% 12.91% 20.19%
Free cash flow margin (40.50%) (32.90%) (19.49%)
Return on equity 3.88% 6.46% 9.00%
Return on assets 0.67% 2.08% 3.21%
Return on invested capital 2.28% 3.06% 4.08%

Growth

Metric GWRS HTO Utilities Regulated Water median
Revenue growth (TTM) 10.77% 5.04% 6.92%
EPS growth (last fiscal year) (54.17%) 1.74% —
Revenue growth, 5-year CAGR 7.62% 7.24% 7.24%
Net income growth, 5-year CAGR 21.76% 10.77% 9.40%

Health

Metric GWRS HTO Utilities Regulated Water median
Debt to equity 1.66 1.03 0.93
Current ratio 0.68 1.67 1.01
Net debt to EBITDA 5.92 6.57 4.42

Dividend

Metric GWRS HTO Utilities Regulated Water median
Dividend yield 2.31% 2.58% 2.27%
Payout ratio 1.06 0.51 0.55

Size

Metric GWRS HTO Utilities Regulated Water median
Market cap 228.64m 2.60b 997.03m

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