AWK vs. CWT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AWK and CWT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AWK’s market capitalization of 27.31 billion USD is substantially larger than CWT’s 2.73 billion USD, indicating a significant difference in their market valuations.
With betas of 0.70 for AWK and 0.65 for CWT, both stocks show similar sensitivity to overall market movements.
| Symbol | AWK | CWT |
|---|---|---|
| Company Name | American Water Works Company, Inc. | California Water Service Group |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Water | Regulated Water |
| CEO | John C. Griffith | Martin A. Kropelnicki |
| Price | 140.05 USD | 45.81 USD |
| Market Cap | 27.31 billion USD | 2.73 billion USD |
| Beta | 0.70 | 0.65 |
| Exchange | NYSE | NYSE |
| IPO Date | April 23, 2008 | March 26, 1990 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AWK and CWT 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.
Profitability
Return on Equity
AWK
10.35%
Regulated Water Industry
- Max
- 10.35%
- Q3
- 10.08%
- Median
- 8.98%
- Q1
- 8.05%
- Min
- 7.36%
In the upper quartile for the Regulated Water industry, AWK’s Return on Equity of 10.35% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
CWT
8.33%
Regulated Water Industry
- Max
- 10.35%
- Q3
- 10.08%
- Median
- 8.98%
- Q1
- 8.05%
- Min
- 7.36%
CWT’s Return on Equity of 8.33% is on par with the norm for the Regulated Water industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AWK
4.28%
Regulated Water Industry
- Max
- 6.92%
- Q3
- 6.34%
- Median
- 4.28%
- Q1
- 3.77%
- Min
- 2.54%
AWK’s Return on Invested Capital of 4.28% is in line with the norm for the Regulated Water industry, reflecting a standard level of efficiency in generating profits from its capital base.
CWT
2.99%
Regulated Water Industry
- Max
- 6.92%
- Q3
- 6.34%
- Median
- 4.28%
- Q1
- 3.77%
- Min
- 2.54%
CWT’s Return on Invested Capital of 2.99% is in the lower quartile for the Regulated Water industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
AWK
22.24%
Regulated Water Industry
- Max
- 27.17%
- Q3
- 24.08%
- Median
- 20.75%
- Q1
- 16.72%
- Min
- 6.15%
AWK’s Net Profit Margin of 22.24% is aligned with the median group of its peers in the Regulated Water industry. This indicates its ability to convert revenue into profit is typical for the sector.
CWT
13.84%
Regulated Water Industry
- Max
- 27.17%
- Q3
- 24.08%
- Median
- 20.75%
- Q1
- 16.72%
- Min
- 6.15%
Falling into the lower quartile for the Regulated Water industry, CWT’s Net Profit Margin of 13.84% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
AWK
36.59%
Regulated Water Industry
- Max
- 42.87%
- Q3
- 36.84%
- Median
- 28.06%
- Q1
- 23.46%
- Min
- 12.18%
AWK’s Operating Profit Margin of 36.59% is around the midpoint for the Regulated Water industry, indicating that its efficiency in managing core business operations is typical for the sector.
CWT
18.37%
Regulated Water Industry
- Max
- 42.87%
- Q3
- 36.84%
- Median
- 28.06%
- Q1
- 23.46%
- Min
- 12.18%
CWT’s Operating Profit Margin of 18.37% is in the lower quartile for the Regulated Water industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AWK | CWT |
|---|---|---|
| Return on Equity (TTM) | 10.35% | 8.33% |
| Return on Assets (TTM) | 3.23% | 2.55% |
| Return on Invested Capital (TTM) | 4.28% | 2.99% |
| Net Profit Margin (TTM) | 22.24% | 13.84% |
| Operating Profit Margin (TTM) | 36.59% | 18.37% |
| Gross Profit Margin (TTM) | 56.18% | 54.87% |
Financial Strength
Current Ratio
AWK
0.49
Regulated Water Industry
- Max
- 0.98
- Q3
- 0.94
- Median
- 0.81
- Q1
- 0.59
- Min
- 0.46
AWK’s Current Ratio of 0.49 falls into the lower quartile for the Regulated Water industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
CWT
0.53
Regulated Water Industry
- Max
- 0.98
- Q3
- 0.94
- Median
- 0.81
- Q1
- 0.59
- Min
- 0.46
CWT’s Current Ratio of 0.53 falls into the lower quartile for the Regulated Water industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AWK
1.38
Regulated Water Industry
- Max
- 1.38
- Q3
- 1.15
- Median
- 0.90
- Q1
- 0.77
- Min
- 0.68
AWK’s leverage is in the upper quartile of the Regulated Water industry, with a Debt-to-Equity Ratio of 1.38. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
CWT
0.90
Regulated Water Industry
- Max
- 1.38
- Q3
- 1.15
- Median
- 0.90
- Q1
- 0.77
- Min
- 0.68
CWT’s Debt-to-Equity Ratio of 0.90 is typical for the Regulated Water industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AWK
3.24
Regulated Water Industry
- Max
- 4.22
- Q3
- 4.04
- Median
- 3.07
- Q1
- 3.00
- Min
- 2.48
AWK’s Interest Coverage Ratio of 3.24 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.
CWT
3.06
Regulated Water Industry
- Max
- 4.22
- Q3
- 4.04
- Median
- 3.07
- Q1
- 3.00
- Min
- 2.48
CWT’s Interest Coverage Ratio of 3.06 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AWK | CWT |
|---|---|---|
| Current Ratio (TTM) | 0.49 | 0.53 |
| Quick Ratio (TTM) | 0.44 | 0.53 |
| Debt-to-Equity Ratio (TTM) | 1.38 | 0.90 |
| Debt-to-Asset Ratio (TTM) | 0.44 | 0.28 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.31 | 4.16 |
| Interest Coverage Ratio (TTM) | 3.24 | 3.06 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AWK and CWT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AWK
2.23%
Regulated Water Industry
- Max
- 3.58%
- Q3
- 2.94%
- Median
- 2.44%
- Q1
- 2.07%
- Min
- 0.81%
AWK’s Dividend Yield of 2.23% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.
CWT
2.62%
Regulated Water Industry
- Max
- 3.58%
- Q3
- 2.94%
- Median
- 2.44%
- Q1
- 2.07%
- Min
- 0.81%
CWT’s Dividend Yield of 2.62% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AWK
55.65%
Regulated Water Industry
- Max
- 99.35%
- Q3
- 57.39%
- Median
- 55.65%
- Q1
- 52.94%
- Min
- 0.00%
AWK’s Dividend Payout Ratio of 55.65% is within the typical range for the Regulated Water industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CWT
51.80%
Regulated Water Industry
- Max
- 99.35%
- Q3
- 57.39%
- Median
- 55.65%
- Q1
- 52.94%
- Min
- 0.00%
CWT’s Dividend Payout Ratio of 51.80% is in the lower quartile for the Regulated Water industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | AWK | CWT |
|---|---|---|
| Dividend Yield (TTM) | 2.23% | 2.62% |
| Dividend Payout Ratio (TTM) | 55.65% | 51.80% |
Valuation
Price-to-Earnings Ratio
AWK
25.50
Regulated Water Industry
- Max
- 26.42
- Q3
- 23.54
- Median
- 20.16
- Q1
- 17.14
- Min
- 8.21
A P/E Ratio of 25.50 places AWK in the upper quartile for the Regulated Water industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
CWT
20.31
Regulated Water Industry
- Max
- 26.42
- Q3
- 23.54
- Median
- 20.16
- Q1
- 17.14
- Min
- 8.21
CWT’s P/E Ratio of 20.31 is within the middle range for the Regulated Water industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AWK
3.73
Regulated Water Industry
- Max
- 3.77
- Q3
- 3.33
- Median
- 2.11
- Q1
- 1.48
- Min
- 0.23
A Forward PEG Ratio of 3.73 places AWK in the upper quartile for the Regulated Water industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
CWT
2.12
Regulated Water Industry
- Max
- 3.77
- Q3
- 3.33
- Median
- 2.11
- Q1
- 1.48
- Min
- 0.23
CWT’s Forward PEG Ratio of 2.12 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.
Price-to-Sales Ratio
AWK
5.67
Regulated Water Industry
- Max
- 6.05
- Q3
- 4.92
- Median
- 3.71
- Q1
- 2.93
- Min
- 2.18
AWK’s P/S Ratio of 5.67 is in the upper echelon for the Regulated Water industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
CWT
2.81
Regulated Water Industry
- Max
- 6.05
- Q3
- 4.92
- Median
- 3.71
- Q1
- 2.93
- Min
- 2.18
In the lower quartile for the Regulated Water industry, CWT’s P/S Ratio of 2.81 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AWK
2.59
Regulated Water Industry
- Max
- 3.06
- Q3
- 2.19
- Median
- 1.97
- Q1
- 1.62
- Min
- 1.25
AWK’s P/B Ratio of 2.59 is in the upper tier for the Regulated Water industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
CWT
1.67
Regulated Water Industry
- Max
- 3.06
- Q3
- 2.19
- Median
- 1.97
- Q1
- 1.62
- Min
- 1.25
CWT’s P/B Ratio of 1.67 is within the conventional range for the Regulated Water 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.
Valuation at a Glance
| Symbol | AWK | CWT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 25.50 | 20.31 |
| Forward PEG Ratio (TTM) | 3.73 | 2.12 |
| Price-to-Sales Ratio (P/S, TTM) | 5.67 | 2.81 |
| Price-to-Book Ratio (P/B, TTM) | 2.59 | 1.67 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -31.04 | -16.21 |
| EV-to-EBITDA (TTM) | 15.39 | 11.93 |
| EV-to-Sales (TTM) | 8.66 | 4.32 |