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ATO vs AWK

ATO
Atmos Energy Corporation
NEUTRAL
Price
$165.34
Market Cap
$26.74B
Sector
Utilities
AI Confidence
72%
AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%

Valuation

P/E Ratio
ATO
22.16
AWK
23.08
Forward P/E
ATO
18.94
AWK
21.26
P/B Ratio
ATO
1.97
AWK
2.32
P/S Ratio
ATO
5.69
AWK
4.99
EV/EBITDA
ATO
15.43
AWK
14.65

Profitability

Gross Margin
ATO
58.13%
AWK
60.75%
Operating Margin
ATO
30.7%
AWK
42.59%
Profit Margin
ATO
25.49%
AWK
21.93%
ROE
ATO
9.32%
AWK
10.46%
ROA
ATO
3.71%
AWK
3.55%

Growth

Revenue Growth
ATO
12.1%
AWK
9.7%
Earnings Growth
ATO
25.6%
AWK
8.1%

Financial Health

Debt/Equity
ATO
0.69
AWK
1.41
Current Ratio
ATO
0.77
AWK
0.42
Quick Ratio
ATO
0.43
AWK
0.31

Dividends

Dividend Yield
ATO
2.42%
AWK
2.52%
Payout Ratio
ATO
46.65%
AWK
55.98%

AI Verdict

ATO NEUTRAL

ATO exhibits a mixed financial profile with a Piotroski F-Score of 4/9 indicating stable but not strong financial health, and no available Altman Z-Score limits distress risk assessment. The stock trades above its Graham Number of $118.68 at $165.34, reflecting a premium valuation, though below the growth-based intrinsic value of $220.07. Strong profitability metrics like a 25.49% profit margin and 30.70% operating margin contrast with weak liquidity (Current Ratio: 0.77) and bearish technical trend. Analysts consensus is 'hold' with a target price of $177.55, implying modest upside, while insider activity shows slight selling pressure.

Strengths
High profitability with 25.49% profit margin and 30.70% operating margin, well above sector average of 13.47%
Strong year-over-year earnings growth of 28.9% and revenue growth of 12.10%, outpacing peer averages
Defensive dividend profile with a sustainable 46.65% payout ratio and 2.42% yield
Risks
Piotroski F-Score of 4/9 suggests borderline financial health, limiting confidence in operational strength
Very weak liquidity with Current Ratio of 0.77 and Quick Ratio of 0.43, below the safe threshold of 1.0
Bearish technical trend (0/100) and recent price weakness: -3.0% over 1 week and -1.8% over 1 month
AWK NEUTRAL

American Water Works (AWK) exhibits a weak Piotroski F-Score of 4/9, indicating borderline financial health, and lacks an Altman Z-Score, limiting distress risk assessment. The stock trades above both the Graham Number ($84.07) and intrinsic value estimate ($107.62) at $129.71, reflecting a premium valuation despite solid profitability and regulated utility stability. Revenue and earnings growth are steady but not exceptional, while high debt/equity and poor liquidity ratios raise concerns. Analysts consensus is a 'hold' with a target price of $141.55, suggesting limited upside.

Strengths
High gross margin (60.75%) and operating margin (42.59%) reflect strong pricing power and cost control in a regulated environment
Consistent year-over-year revenue growth (9.70%) and earnings growth (~8%) demonstrate operational stability
Dividend yield of 2.52% is above sector average with a sustainable payout ratio (55.98%)
Risks
Low Piotroski F-Score (4/9) signals weak financial health, particularly in liquidity and leverage metrics
Very low current ratio (0.42) and quick ratio (0.31) indicate potential short-term liquidity pressure
High debt/equity ratio (1.41) exceeds sector average (1.68), increasing financial risk in rising rate environments

Compare Another Pair

ATO vs AWK: Head-to-Head Comparison

This page compares Atmos Energy Corporation (ATO) and American Water Works Company, Inc. (AWK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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