Middlesex Water Company (MSEX) vs The York Water Company (YORW)

Middlesex Water Company and The York Water Company are both Utilities Regulated Water companies. Middlesex Water Company is the larger, with a market value of $997.0M against $499.0M — 2.0× the size. The York Water Company trades at the lower P/E: 19.2× against 20.6×. The York Water Company grew revenue faster over the last twelve months: 9.43% against 5.26%. The York Water Company has the higher net margin (28.5% vs 23.2%) and the lower return on invested capital (3.94% vs 4.08%). Both pay a dividend; The York Water Company yields more (2.27% vs 2.25%). Across the 21 metrics below, The York Water Company leads on 15 and Middlesex Water Company on 6.

Valuation

Metric MSEX YORW Utilities Regulated Water median
P/E 20.57 19.24 20.64
P/S 4.83 5.90 4.37
P/B 1.91 1.67 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 15.13 15.14 14.48
EV/Sales 6.78 8.17 6.20
Earnings yield 4.86% 5.20% 4.83%
Free cash flow yield (4.07%) (2.87%) (4.54%)

Profitability

Metric MSEX YORW Utilities Regulated Water median
Gross margin 100.00% 100.00% 71.91%
Operating margin 29.22% 36.56% 29.22%
Net margin 23.22% 28.53% 20.19%
Free cash flow margin (19.67%) (16.96%) (19.49%)
Return on equity 9.78% 9.00% 9.00%
Return on assets 3.50% 3.51% 3.21%
Return on invested capital 4.08% 3.94% 4.08%

Growth

Metric MSEX YORW Utilities Regulated Water median
Revenue growth (TTM) 5.26% 9.43% 6.92%
EPS growth (last fiscal year) (4.45%) (2.11%) —
Revenue growth, 5-year CAGR 6.58% 7.55% 7.24%
Net income growth, 5-year CAGR 2.22% 3.86% 9.40%

Health

Metric MSEX YORW Utilities Regulated Water median
Debt to equity 0.77 0.64 0.93
Current ratio 0.50 1.05 1.01
Net debt to EBITDA 4.42 5.54 4.42

Dividend

Metric MSEX YORW Utilities Regulated Water median
Dividend yield 2.25% 2.27% 2.27%
Payout ratio 0.59 0.55 0.55

Size

Metric MSEX YORW Utilities Regulated Water median
Market cap 997.03m 498.95m 997.03m

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