AWR vs. WTRG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AWR and WTRG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
WTRG’s market capitalization of 10.31 billion USD is significantly greater than AWR’s 2.97 billion USD, highlighting its more substantial market valuation.
With betas of 0.61 for AWR and 0.80 for WTRG, both stocks show similar sensitivity to overall market movements.
| Symbol | AWR | WTRG |
|---|---|---|
| Company Name | American States Water Company | Essential Utilities, Inc. |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Water | Regulated Water |
| CEO | Robert J. Sprowls | Christopher H. Franklin |
| Price | 77.16 USD | 36.78 USD |
| Market Cap | 2.97 billion USD | 10.31 billion USD |
| Beta | 0.61 | 0.80 |
| Exchange | NYSE | NYSE |
| IPO Date | February 21, 1973 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AWR 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.
Profitability
Return on Equity
AWR
13.70%
Regulated Water Industry
- Max
- 10.35%
- Q3
- 10.08%
- Median
- 8.98%
- Q1
- 8.05%
- Min
- 7.36%
AWR’s Return on Equity of 13.70% is exceptionally high, placing it well beyond the typical range for the Regulated Water industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
Return on Invested Capital
AWR
6.36%
Regulated Water Industry
- Max
- 6.92%
- Q3
- 6.34%
- Median
- 4.28%
- Q1
- 3.77%
- Min
- 2.54%
In the upper quartile for the Regulated Water industry, AWR’s Return on Invested Capital of 6.36% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
Net Profit Margin
AWR
20.22%
Regulated Water Industry
- Max
- 27.17%
- Q3
- 24.08%
- Median
- 20.75%
- Q1
- 16.72%
- Min
- 6.15%
AWR’s Net Profit Margin of 20.22% 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.
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.
Operating Profit Margin
AWR
31.41%
Regulated Water Industry
- Max
- 42.87%
- Q3
- 36.84%
- Median
- 28.06%
- Q1
- 23.46%
- Min
- 12.18%
AWR’s Operating Profit Margin of 31.41% is around the midpoint for the Regulated Water industry, indicating that its efficiency in managing core business operations is typical for the sector.
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.
Profitability at a Glance
| Symbol | AWR | WTRG |
|---|---|---|
| Return on Equity (TTM) | 13.70% | 9.81% |
| Return on Assets (TTM) | 4.83% | 3.35% |
| Return on Invested Capital (TTM) | 6.36% | 5.13% |
| Net Profit Margin (TTM) | 20.22% | 27.17% |
| Operating Profit Margin (TTM) | 31.41% | 38.35% |
| Gross Profit Margin (TTM) | 69.36% | 59.24% |
Financial Strength
Current Ratio
AWR
0.81
Regulated Water Industry
- Max
- 0.98
- Q3
- 0.94
- Median
- 0.81
- Q1
- 0.59
- Min
- 0.46
AWR’s Current Ratio of 0.81 aligns with the median group of the Regulated Water industry, indicating that its short-term liquidity is in line with its sector 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.
Debt-to-Equity Ratio
AWR
0.99
Regulated Water Industry
- Max
- 1.38
- Q3
- 1.15
- Median
- 0.90
- Q1
- 0.77
- Min
- 0.68
AWR’s Debt-to-Equity Ratio of 0.99 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.
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.
Interest Coverage Ratio
AWR
3.85
Regulated Water Industry
- Max
- 4.22
- Q3
- 4.04
- Median
- 3.07
- Q1
- 3.00
- Min
- 2.48
AWR’s Interest Coverage Ratio of 3.85 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.
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.
Financial Strength at a Glance
| Symbol | AWR | WTRG |
|---|---|---|
| Current Ratio (TTM) | 0.81 | 0.65 |
| Quick Ratio (TTM) | 0.76 | 0.57 |
| Debt-to-Equity Ratio (TTM) | 0.99 | 1.20 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.42 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.83 | 6.10 |
| Interest Coverage Ratio (TTM) | 3.85 | 2.78 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AWR and WTRG. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AWR
2.41%
Regulated Water Industry
- Max
- 3.58%
- Q3
- 2.94%
- Median
- 2.44%
- Q1
- 2.07%
- Min
- 0.81%
AWR’s Dividend Yield of 2.41% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AWR
56.01%
Regulated Water Industry
- Max
- 99.35%
- Q3
- 57.39%
- Median
- 55.65%
- Q1
- 52.94%
- Min
- 0.00%
AWR’s Dividend Payout Ratio of 56.01% is within the typical range for the Regulated Water 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.
Dividend at a Glance
| Symbol | AWR | WTRG |
|---|---|---|
| Dividend Yield (TTM) | 2.41% | 3.54% |
| Dividend Payout Ratio (TTM) | 56.01% | 57.38% |
Valuation
Price-to-Earnings Ratio
AWR
24.00
Regulated Water Industry
- Max
- 26.42
- Q3
- 23.54
- Median
- 20.16
- Q1
- 17.14
- Min
- 8.21
A P/E Ratio of 24.00 places AWR 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.
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.
Forward P/E to Growth Ratio
AWR
3.80
Regulated Water Industry
- Max
- 3.77
- Q3
- 3.33
- Median
- 2.11
- Q1
- 1.48
- Min
- 0.23
AWR’s Forward PEG Ratio of 3.80 is exceptionally high for the Regulated Water industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
Price-to-Sales Ratio
AWR
4.89
Regulated Water Industry
- Max
- 6.05
- Q3
- 4.92
- Median
- 3.71
- Q1
- 2.93
- Min
- 2.18
AWR’s P/S Ratio of 4.89 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.
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.
Price-to-Book Ratio
AWR
3.09
Regulated Water Industry
- Max
- 3.06
- Q3
- 2.19
- Median
- 1.97
- Q1
- 1.62
- Min
- 1.25
At 3.09, AWR’s P/B Ratio is at an extreme premium to the Regulated Water industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
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.
Valuation at a Glance
| Symbol | AWR | WTRG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.00 | 16.50 |
| Forward PEG Ratio (TTM) | 3.80 | 2.63 |
| Price-to-Sales Ratio (P/S, TTM) | 4.89 | 4.57 |
| Price-to-Book Ratio (P/B, TTM) | 3.09 | 1.57 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -55.03 | -19.90 |
| EV-to-EBITDA (TTM) | 16.11 | 14.21 |
| EV-to-Sales (TTM) | 6.41 | 8.01 |