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AWK vs EIX

AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%
EIX
Edison International
NEUTRAL
Price
$68.86
Market Cap
$26.5B
Sector
Utilities
AI Confidence
80%

Valuation

P/E Ratio
AWK
23.08
EIX
5.96
Forward P/E
AWK
21.26
EIX
10.57
P/B Ratio
AWK
2.32
EIX
1.55
P/S Ratio
AWK
4.99
EIX
1.37
EV/EBITDA
AWK
14.65
EIX
8.5

Profitability

Gross Margin
AWK
60.75%
EIX
57.83%
Operating Margin
AWK
42.59%
EIX
35.95%
Profit Margin
AWK
21.93%
EIX
23.08%
ROE
AWK
10.46%
EIX
24.1%
ROA
AWK
3.55%
EIX
3.81%

Growth

Revenue Growth
AWK
9.7%
EIX
30.8%
Earnings Growth
AWK
8.1%
EIX
446.3%

Financial Health

Debt/Equity
AWK
1.41
EIX
2.16
Current Ratio
AWK
0.42
EIX
0.73
Quick Ratio
AWK
0.31
EIX
0.27

Dividends

Dividend Yield
AWK
2.52%
EIX
5.1%
Payout Ratio
AWK
55.98%
EIX
29.09%

AI Verdict

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
EIX NEUTRAL

EIX presents a complex value proposition with a stable Piotroski F-Score of 4/9 and a significant discount to its Graham Number ($107.41). While the company exhibits exceptional profitability metrics (ROE 24.10%) and a very low P/E ratio (5.96) relative to the utility sector, these are offset by severe liquidity constraints (Current Ratio 0.73) and high leverage (Debt/Equity 2.16). The massive growth in earnings is largely attributed to non-core items and wildfire recoveries, making the growth-based intrinsic value of $340.73 unrealistic. The outlook remains neutral due to the persistent systemic risk of wildfire liabilities and bearish insider sentiment.

Strengths
Extremely low P/E ratio (5.96) compared to sector average (27.15)
Strong profitability with ROE of 24.10% and Profit Margin of 23.08%
Sustainable dividend profile with a 5.10% yield and low payout ratio (29.09%)
Risks
Severe liquidity risk indicated by a Quick Ratio of 0.27 and Current Ratio of 0.73
High financial leverage with a Debt/Equity ratio of 2.16
Significant systemic risk from wildfire liabilities in California

Compare Another Pair

AWK vs EIX: Head-to-Head Comparison

This page compares American Water Works Company, Inc. (AWK) and Edison International (EIX) 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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