AWK vs. WTRG: American Water Works vs. Essential Utilities Stock Comparison
How do American Water Works (AWK) and Essential Utilities (WTRG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
American Water Works (AWK) and Essential Utilities (WTRG) are both classified in the Water Utilities sub-industry within the broader Water Utilities industry, placing them in the closest GICS peer bucket.
| Profile Item | AWK | WTRG |
|---|---|---|
| Name | American Water Works Company, Inc. | Essential Utilities Inc. |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Water Utilities | Water Utilities |
| GICS Sub-Industry | Water Utilities | Water Utilities |
| Market Capitalization | 29.92 billion USD | 13.02 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | April 23, 2008 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Total Return (1Y) | 17.61% | 19.07% |
| Total Return (3Y, Annualized) | 9.05% | 13.95% |
| Total Return (5Y, Annualized) | -0.39% | 2.39% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Volatility (1Y, Annualized) | 22.53% | 22.14% |
| Beta (5Y) | 0.54 | 0.61 |
| Max Drawdown (5Y) | -37.10% | -36.53% |
| Avg. Volume (3M) | 2.03M | 2.38M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Sharpe Ratio (1Y) | 0.59 | 0.67 |
| Sortino Ratio (1Y) | 0.95 | 1.08 |
Profitability
ROE (TTM)
Both American Water Works (AWK) at 9.95% and Essential Utilities (WTRG) at 8.13% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
AWK
Utilities industry group
9.95%
- Max
- 17.99%
- Q3
- 12.01%
- AWK
- 9.95%
- Median
- 9.44%
- Q1
- 7.56%
- Min
- 2.17%
WTRG
Utilities industry group
8.13%
- Max
- 17.99%
- Q3
- 12.01%
- Median
- 9.44%
- WTRG
- 8.13%
- Q1
- 7.56%
- Min
- 2.17%
Net Margin (TTM)
For every dollar of sales, both American Water Works (AWK) at 21.26% and Essential Utilities (WTRG) at 21.79% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
AWK
Utilities industry group
21.26%
- Max
- 28.78%
- AWK
- 21.26%
- Q3
- 17.30%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
WTRG
Utilities industry group
21.79%
- Max
- 28.78%
- WTRG
- 21.79%
- Q3
- 17.30%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
Operating Margin (TTM)
Both American Water Works (AWK) at 43.18% and Essential Utilities (WTRG) at 38.94% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
AWK
Utilities industry group
43.18%
- Max
- 53.83%
- AWK
- 43.18%
- Q3
- 31.12%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
WTRG
Utilities industry group
38.94%
- Max
- 53.83%
- WTRG
- 38.94%
- Q3
- 31.12%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
Profitability Metrics
| Metric | AWK | WTRG |
|---|---|---|
| ROE (TTM) | 9.95% | 8.13% |
| ROA (TTM) | 3.50% | 3.00% |
| Net Margin (TTM) | 21.26% | 21.79% |
| Operating Margin (TTM) | 43.18% | 38.94% |
| Gross Margin (TTM) | 61.86% | 57.07% |
Growth
Revenue Growth
Essential Utilities (WTRG) at 18.62% sits in the top revenue growth quartile, while American Water Works (AWK) at 9.74% is closer to the peer norm — faster top-line expansion for WTRG.
EPS Growth
Both American Water Works (AWK) at 5.57% and Essential Utilities (WTRG) at 1.38% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Revenue Growth (YoY) | 9.74% | 18.62% |
| Revenue Growth (3Y CAGR) | 10.67% | 2.65% |
| EPS Growth (YoY) | 5.57% | 1.38% |
| EPS Growth (3Y CAGR) | 8.06% | 7.52% |
Financial Strength
Current Ratio (MRQ)
Both American Water Works (AWK) at 0.39 and Essential Utilities (WTRG) at 0.40 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
AWK
Utilities industry group
0.39
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- AWK
- 0.39
- Min
- 0.29
WTRG
Utilities industry group
0.40
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- WTRG
- 0.40
- Min
- 0.29
Debt / Equity (MRQ)
Both American Water Works (AWK) at 1.38 and Essential Utilities (WTRG) at 1.23 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
AWK
Utilities industry group
1.38
- Max
- 2.63
- Q3
- 1.77
- AWK
- 1.38
- Median
- 1.35
- Q1
- 0.84
- Min
- 0.00
WTRG
Utilities industry group
1.23
- Max
- 2.63
- Q3
- 1.77
- Median
- 1.35
- WTRG
- 1.23
- Q1
- 0.84
- Min
- 0.00
Financial Strength Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Current Ratio (MRQ) | 0.39 | 0.40 |
| Debt / Equity (MRQ) | 1.38 | 1.23 |
| Net Debt / EBITDA | 5.49 | 6.30 |
Dividends
Dividend Yield (TTM)
Both American Water Works (AWK) at 2.26% and Essential Utilities (WTRG) at 3.01% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AWK
Utilities industry group
2.26%
- Max
- 6.66%
- Q3
- 3.58%
- Median
- 2.85%
- AWK
- 2.26%
- Q1
- 0.66%
- Min
- 0.00%
WTRG
Utilities industry group
3.01%
- Max
- 6.66%
- Q3
- 3.58%
- WTRG
- 3.01%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
American Water Works (AWK) at 59.60% pays out a band-typical share of earnings, while Essential Utilities (WTRG) at 69.42% distributes more than its industry norm — less retained, thinner cover.
AWK
Utilities industry group
59.60%
- Max
- 113.04%
- Q3
- 68.72%
- AWK
- 59.60%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
WTRG
Utilities industry group
69.42%
- Max
- 113.04%
- WTRG
- 69.42%
- Q3
- 68.72%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
Dividend Metrics
| Metric | AWK | WTRG |
|---|---|---|
| Dividend Yield (TTM) | 2.26% | 3.01% |
| Dividend Payout Ratio (TTM) | 59.60% | 69.42% |
Valuation
P/E Ratio (TTM)
Essential Utilities (WTRG) at 22.73 is near its industry’s usual P/E ratio, while American Water Works (AWK) at 26.00 sits in the richer quartile — AWK needs stronger growth or earnings quality to justify the premium.
AWK
Utilities industry group
26.00
- Max
- 31.22
- AWK
- 26.00
- Q3
- 23.30
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
WTRG
Utilities industry group
22.73
- Max
- 31.22
- Q3
- 23.30
- WTRG
- 22.73
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
P/S Ratio (TTM)
Both American Water Works (AWK) at 5.60 and Essential Utilities (WTRG) at 5.01 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.
AWK
Utilities industry group
5.60
- Max
- 6.35
- AWK
- 5.60
- Q3
- 3.63
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
WTRG
Utilities industry group
5.01
- Max
- 6.35
- WTRG
- 5.01
- Q3
- 3.63
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
P/B Ratio (MRQ)
Essential Utilities (WTRG) at 1.83 is valued about in line with its industry on P/B ratio, while American Water Works (AWK) at 2.51 carries an above-peer premium to book — AWK is pricier on assets.
AWK
Utilities industry group
2.51
- Max
- 3.12
- AWK
- 2.51
- Q3
- 2.21
- Median
- 1.83
- Q1
- 1.46
- Min
- 0.34
WTRG
Utilities industry group
1.83
- Max
- 3.12
- Q3
- 2.21
- Median
- 1.83
- WTRG
- 1.83
- Q1
- 1.46
- Min
- 0.34
Valuation Metrics
| Metric | AWK | WTRG |
|---|---|---|
| P/E Ratio (TTM) | 26.00 | 22.73 |
| P/S Ratio (TTM) | 5.60 | 5.01 |
| P/B Ratio (MRQ) | 2.51 | 1.83 |
| Free Cash Flow Yield (TTM) | -5.45% | -5.45% |