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AWK vs ES

AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%
ES
Eversource Energy
NEUTRAL
Price
$68.64
Market Cap
$25.8B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AWK
23.08
ES
15.05
Forward P/E
AWK
21.26
ES
13.62
P/B Ratio
AWK
2.32
ES
1.59
P/S Ratio
AWK
4.99
ES
1.9
EV/EBITDA
AWK
14.65
ES
11.93

Profitability

Gross Margin
AWK
60.75%
ES
53.62%
Operating Margin
AWK
42.59%
ES
22.14%
Profit Margin
AWK
21.93%
ES
12.49%
ROE
AWK
10.46%
ES
10.78%
ROA
AWK
3.55%
ES
3.17%

Growth

Revenue Growth
AWK
9.7%
ES
13.4%
Earnings Growth
AWK
8.1%
ES
466.2%

Financial Health

Debt/Equity
AWK
1.41
ES
1.85
Current Ratio
AWK
0.42
ES
0.65
Quick Ratio
AWK
0.31
ES
0.29

Dividends

Dividend Yield
AWK
2.52%
ES
4.59%
Payout Ratio
AWK
55.98%
ES
66.01%

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
ES NEUTRAL

Eversource Energy presents a mixed profile with a stable Piotroski F-Score of 4/9 and a current price ($68.64) trading very close to its Graham Number ($66.53), suggesting it is near defensive fair value. While the company shows strong profitability margins and significant year-over-year earnings growth, these are offset by concerning liquidity metrics and a bearish technical trend. The wide gap between the Graham Number and the growth-based Intrinsic Value ($134.52) indicates a tension between its current utility-like stability and its growth potential. Overall, the stock is a value play hampered by poor short-term liquidity and negative insider sentiment.

Strengths
P/E ratio (15.05) is significantly lower than the sector average (26.11)
Strong profit margins (12.49%) and operating margins (22.14%) compared to sector peers
Robust year-over-year earnings growth of 466.20%
Risks
Critical liquidity risk indicated by a Current Ratio of 0.65 and Quick Ratio of 0.29
High Debt/Equity ratio (1.85) exceeding the sector average (1.62)
Bearish insider activity with 7 sell transactions and 0 buys in the last 6 months

Compare Another Pair

AWK vs ES: Head-to-Head Comparison

This page compares American Water Works Company, Inc. (AWK) and Eversource Energy (ES) 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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