H2O America (HTO) vs The York Water Company (YORW)

H2O America and The York Water Company are both Utilities Regulated Water companies. H2O America is the larger, with a market value of $2.6B against $499.0M — 5.2× the size. The York Water Company trades at the lower P/E: 19.2× against 21.8×. The York Water Company grew revenue faster over the last twelve months: 9.43% against 5.04%. The York Water Company has the higher net margin (28.5% vs 12.9%) and the higher return on invested capital (3.94% vs 3.06%). Both pay a dividend; H2O America yields more (2.58% vs 2.27%). Across the 22 metrics below, The York Water Company leads on 14 and H2O America on 8.

Valuation

Metric HTO YORW Utilities Regulated Water median
P/E 21.77 19.24 20.64
P/S 3.15 5.90 4.37
P/B 1.41 1.67 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 14.35 15.14 14.48
EV/Sales 5.30 8.17 6.20
Earnings yield 4.59% 5.20% 4.83%
Free cash flow yield (10.46%) (2.87%) (4.54%)

Profitability

Metric HTO YORW Utilities Regulated Water median
Gross margin 60.99% 100.00% 71.91%
Operating margin 21.48% 36.56% 29.22%
Net margin 12.91% 28.53% 20.19%
Free cash flow margin (32.90%) (16.96%) (19.49%)
Return on equity 6.46% 9.00% 9.00%
Return on assets 2.08% 3.51% 3.21%
Return on invested capital 3.06% 3.94% 4.08%

Growth

Metric HTO YORW Utilities Regulated Water median
Revenue growth (TTM) 5.04% 9.43% 6.92%
EPS growth (last fiscal year) 1.74% (2.11%) —
Revenue growth, 5-year CAGR 7.24% 7.55% 7.24%
Net income growth, 5-year CAGR 10.77% 3.86% 9.40%

Health

Metric HTO YORW Utilities Regulated Water median
Debt to equity 1.03 0.64 0.93
Current ratio 1.67 1.05 1.01
Net debt to EBITDA 6.57 5.54 4.42

Dividend

Metric HTO YORW Utilities Regulated Water median
Dividend yield 2.58% 2.27% 2.27%
Payout ratio 0.51 0.55 0.55

Size

Metric HTO YORW Utilities Regulated Water median
Market cap 2.60b 498.95m 997.03m

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