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ATO vs. WTRG: A Head-to-Head Stock Comparison

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Here’s a clear look at ATO and WTRG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ATO’s market capitalization of 24.19 billion USD is substantially larger than WTRG’s 10.31 billion USD, indicating a significant difference in their market valuations.

With betas of 0.70 for ATO and 0.80 for WTRG, both stocks show similar sensitivity to overall market movements.

SymbolATOWTRG
Company NameAtmos Energy CorporationEssential Utilities, Inc.
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated GasRegulated Water
CEOJohn Kevin AkersChristopher H. Franklin
Price152.28 USD36.78 USD
Market Cap24.19 billion USD10.31 billion USD
Beta0.700.80
ExchangeNYSENYSE
IPO DateDecember 28, 1983March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of ATO and WTRG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ATO vs. WTRG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ATO

9.05%

Regulated Gas Industry

Max
11.45%
Q3
11.45%
Median
9.01%
Q1
7.53%
Min
6.41%

ATO’s Return on Equity of 9.05% is on par with the norm for the Regulated Gas industry, indicating its profitability relative to shareholder equity is typical for the sector.

WTRG

9.81%

Regulated Water Industry

Max
10.35%
Q3
10.08%
Median
8.98%
Q1
8.05%
Min
7.36%

WTRG’s Return on Equity of 9.81% is on par with the norm for the Regulated Water industry, indicating its profitability relative to shareholder equity is typical for the sector.

ATO vs. WTRG: A comparison of their ROE against their respective Regulated Gas and Regulated Water industry benchmarks.

Return on Invested Capital

ATO

4.73%

Regulated Gas Industry

Max
8.99%
Q3
5.97%
Median
4.43%
Q1
0.25%
Min
0.00%

ATO’s Return on Invested Capital of 4.73% is in line with the norm for the Regulated Gas industry, reflecting a standard level of efficiency in generating profits from its capital base.

WTRG

5.13%

Regulated Water Industry

Max
6.92%
Q3
6.34%
Median
4.28%
Q1
3.77%
Min
2.54%

WTRG’s Return on Invested Capital of 5.13% is in line with the norm for the Regulated Water industry, reflecting a standard level of efficiency in generating profits from its capital base.

ATO vs. WTRG: A comparison of their ROIC against their respective Regulated Gas and Regulated Water industry benchmarks.

Net Profit Margin

ATO

25.35%

Regulated Gas Industry

Max
25.35%
Q3
14.67%
Median
8.48%
Q1
4.66%
Min
-6.69%

A Net Profit Margin of 25.35% places ATO in the upper quartile for the Regulated Gas industry, signifying strong profitability and more effective cost management than most of its peers.

WTRG

27.17%

Regulated Water Industry

Max
27.17%
Q3
24.08%
Median
20.75%
Q1
16.72%
Min
6.15%

A Net Profit Margin of 27.17% places WTRG in the upper quartile for the Regulated Water industry, signifying strong profitability and more effective cost management than most of its peers.

ATO vs. WTRG: A comparison of their Net Profit Margin against their respective Regulated Gas and Regulated Water industry benchmarks.

Operating Profit Margin

ATO

33.30%

Regulated Gas Industry

Max
45.15%
Q3
28.16%
Median
19.42%
Q1
14.26%
Min
3.90%

An Operating Profit Margin of 33.30% places ATO in the upper quartile for the Regulated Gas industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

WTRG

38.35%

Regulated Water Industry

Max
42.87%
Q3
36.84%
Median
28.06%
Q1
23.46%
Min
12.18%

An Operating Profit Margin of 38.35% places WTRG in the upper quartile for the Regulated Water industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ATO vs. WTRG: A comparison of their Operating Margin against their respective Regulated Gas and Regulated Water industry benchmarks.

Profitability at a Glance

SymbolATOWTRG
Return on Equity (TTM)9.05%9.81%
Return on Assets (TTM)4.21%3.35%
Return on Invested Capital (TTM)4.73%5.13%
Net Profit Margin (TTM)25.35%27.17%
Operating Profit Margin (TTM)33.30%38.35%
Gross Profit Margin (TTM)54.44%59.24%

Financial Strength

Current Ratio

ATO

1.33

Regulated Gas Industry

Max
1.57
Q3
1.15
Median
1.00
Q1
0.69
Min
0.38

ATO’s Current Ratio of 1.33 is in the upper quartile for the Regulated Gas industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

WTRG

0.65

Regulated Water Industry

Max
0.98
Q3
0.94
Median
0.81
Q1
0.59
Min
0.46

WTRG’s Current Ratio of 0.65 aligns with the median group of the Regulated Water industry, indicating that its short-term liquidity is in line with its sector peers.

ATO vs. WTRG: A comparison of their Current Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Debt-to-Equity Ratio

ATO

0.65

Regulated Gas Industry

Max
1.67
Q3
1.53
Median
1.38
Q1
0.83
Min
0.02

Falling into the lower quartile for the Regulated Gas industry, ATO’s Debt-to-Equity Ratio of 0.65 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

WTRG

1.20

Regulated Water Industry

Max
1.38
Q3
1.15
Median
0.90
Q1
0.77
Min
0.68

WTRG’s leverage is in the upper quartile of the Regulated Water industry, with a Debt-to-Equity Ratio of 1.20. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ATO vs. WTRG: A comparison of their D/E Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Interest Coverage Ratio

ATO

8.02

Regulated Gas Industry

Max
4.65
Q3
3.07
Median
2.65
Q1
1.77
Min
1.22

With an Interest Coverage Ratio of 8.02, ATO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Regulated Gas industry. This stems from either robust earnings or a conservative debt load.

WTRG

2.78

Regulated Water Industry

Max
4.22
Q3
4.04
Median
3.07
Q1
3.00
Min
2.48

In the lower quartile for the Regulated Water industry, WTRG’s Interest Coverage Ratio of 2.78 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

ATO vs. WTRG: A comparison of their Interest Coverage against their respective Regulated Gas and Regulated Water industry benchmarks.

Financial Strength at a Glance

SymbolATOWTRG
Current Ratio (TTM)1.330.65
Quick Ratio (TTM)1.250.57
Debt-to-Equity Ratio (TTM)0.651.20
Debt-to-Asset Ratio (TTM)0.320.42
Net Debt-to-EBITDA Ratio (TTM)3.496.10
Interest Coverage Ratio (TTM)8.022.78

Growth

The following charts compare key year-over-year (YoY) growth metrics for ATO and WTRG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ATO vs. WTRG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ATO vs. WTRG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ATO vs. WTRG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ATO

2.24%

Regulated Gas Industry

Max
6.99%
Q3
4.15%
Median
4.00%
Q1
2.73%
Min
0.00%

ATO’s Dividend Yield of 2.24% is in the lower quartile for the Regulated Gas industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

WTRG

3.54%

Regulated Water Industry

Max
3.58%
Q3
2.94%
Median
2.44%
Q1
2.07%
Min
0.81%

With a Dividend Yield of 3.54%, WTRG offers a more attractive income stream than most of its peers in the Regulated Water industry, signaling a strong commitment to shareholder returns.

ATO vs. WTRG: A comparison of their Dividend Yield against their respective Regulated Gas and Regulated Water industry benchmarks.

Dividend Payout Ratio

ATO

46.20%

Regulated Gas Industry

Max
87.89%
Q3
74.00%
Median
60.41%
Q1
45.73%
Min
0.00%

ATO’s Dividend Payout Ratio of 46.20% is within the typical range for the Regulated Gas industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

WTRG

57.38%

Regulated Water Industry

Max
99.35%
Q3
57.39%
Median
55.65%
Q1
52.94%
Min
0.00%

WTRG’s Dividend Payout Ratio of 57.38% is within the typical range for the Regulated Water industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ATO vs. WTRG: A comparison of their Payout Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Dividend at a Glance

SymbolATOWTRG
Dividend Yield (TTM)2.24%3.54%
Dividend Payout Ratio (TTM)46.20%57.38%

Valuation

Price-to-Earnings Ratio

ATO

21.32

Regulated Gas Industry

Max
23.74
Q3
22.05
Median
16.86
Q1
15.06
Min
10.79

ATO’s P/E Ratio of 21.32 is within the middle range for the Regulated Gas industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

WTRG

16.50

Regulated Water Industry

Max
26.42
Q3
23.54
Median
20.16
Q1
17.14
Min
8.21

In the lower quartile for the Regulated Water industry, WTRG’s P/E Ratio of 16.50 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ATO vs. WTRG: A comparison of their P/E Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Forward P/E to Growth Ratio

ATO

3.14

Regulated Gas Industry

Max
3.70
Q3
3.36
Median
3.17
Q1
2.55
Min
2.21

ATO’s Forward PEG Ratio of 3.14 is within the middle range of its peers in the Regulated Gas industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

WTRG

2.63

Regulated Water Industry

Max
3.77
Q3
3.33
Median
2.11
Q1
1.48
Min
0.23

WTRG’s Forward PEG Ratio of 2.63 is within the middle range of its peers in the Regulated Water industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ATO vs. WTRG: A comparison of their Forward PEG Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Price-to-Sales Ratio

ATO

5.39

Regulated Gas Industry

Max
3.36
Q3
2.16
Median
1.35
Q1
1.06
Min
0.32

With a P/S Ratio of 5.39, ATO trades at a valuation that eclipses even the highest in the Regulated Gas industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

WTRG

4.57

Regulated Water Industry

Max
6.05
Q3
4.92
Median
3.71
Q1
2.93
Min
2.18

WTRG’s P/S Ratio of 4.57 aligns with the market consensus for the Regulated Water industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ATO vs. WTRG: A comparison of their P/S Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Price-to-Book Ratio

ATO

1.84

Regulated Gas Industry

Max
2.11
Q3
1.88
Median
1.55
Q1
1.24
Min
1.10

ATO’s P/B Ratio of 1.84 is within the conventional range for the Regulated Gas industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

WTRG

1.57

Regulated Water Industry

Max
3.06
Q3
2.19
Median
1.97
Q1
1.62
Min
1.25

WTRG’s P/B Ratio of 1.57 is in the lower quartile for the Regulated Water industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

ATO vs. WTRG: A comparison of their P/B Ratio against their respective Regulated Gas and Regulated Water industry benchmarks.

Valuation at a Glance

SymbolATOWTRG
Price-to-Earnings Ratio (P/E, TTM)21.3216.50
Forward PEG Ratio (TTM)3.142.63
Price-to-Sales Ratio (P/S, TTM)5.394.57
Price-to-Book Ratio (P/B, TTM)1.841.57
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-18.53-19.90
EV-to-EBITDA (TTM)14.0914.21
EV-to-Sales (TTM)7.178.01