Global Water Resources, Inc. (GWRS) vs Pure Cycle Corporation (PCYO)

Global Water Resources, Inc. and Pure Cycle Corporation are both Utilities Regulated Water companies. Pure Cycle Corporation is the larger, with a market value of $261.9M against $228.6M — 1.1× the size. Pure Cycle Corporation trades at the lower P/E: 17.8× against 73.6×. Pure Cycle Corporation grew revenue faster over the last twelve months: 22.9% against 10.8%. Pure Cycle Corporation has the higher net margin (43.7% vs 5.22%) and the higher return on invested capital (5.05% vs 2.28%). Across the 21 metrics below, Pure Cycle Corporation leads on 15 and Global Water Resources, Inc. on 6.

Valuation

Metric GWRS PCYO Utilities Regulated Water median
P/E 73.64 17.82 20.64
P/S 3.88 7.77 4.37
P/B 2.75 1.73 1.91
Price to free cash flow n/m 65.08 —
EV/EBITDA 14.61 17.76 14.48
EV/Sales 6.20 7.94 6.20
Earnings yield 1.36% 5.61% 4.83%
Free cash flow yield (10.44%) 1.54% (4.54%)

Profitability

Metric GWRS PCYO Utilities Regulated Water median
Gross margin 71.91% 61.97% 71.91%
Operating margin 13.60% 37.67% 29.22%
Net margin 5.22% 43.66% 20.19%
Free cash flow margin (40.50%) 11.94% (19.49%)
Return on equity 3.88% 10.22% 9.00%
Return on assets 0.67% 8.99% 3.21%
Return on invested capital 2.28% 5.05% 4.08%

Growth

Metric GWRS PCYO Utilities Regulated Water median
Revenue growth (TTM) 10.77% 22.88% 6.92%
EPS growth (last fiscal year) (54.17%) 12.50% —
Revenue growth, 5-year CAGR 7.62% 0.18% 7.24%
Net income growth, 5-year CAGR 21.76% 14.20% 9.40%

Health

Metric GWRS PCYO Utilities Regulated Water median
Debt to equity 1.66 0.09 0.93
Current ratio 0.68 1.53 1.01
Net debt to EBITDA 5.92 (1.52) 4.42

Dividend

Metric GWRS PCYO Utilities Regulated Water median
Dividend yield 2.31% — 2.27%
Payout ratio 1.06 0.00 0.55

Size

Metric GWRS PCYO Utilities Regulated Water median
Market cap 228.64m 261.94m 997.03m

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