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AWK vs LNT

AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%
LNT
Alliant Energy Corporation
NEUTRAL
Price
$73.10
Market Cap
$18.88B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AWK
23.08
LNT
23.28
Forward P/E
AWK
21.26
LNT
19.89
P/B Ratio
AWK
2.32
LNT
2.56
P/S Ratio
AWK
4.99
LNT
4.33
EV/EBITDA
AWK
14.65
LNT
16.5

Profitability

Gross Margin
AWK
60.75%
LNT
45.67%
Operating Margin
AWK
42.59%
LNT
16.73%
Profit Margin
AWK
21.93%
LNT
18.57%
ROE
AWK
10.46%
LNT
11.3%
ROA
AWK
3.55%
LNT
2.64%

Growth

Revenue Growth
AWK
9.7%
LNT
9.0%
Earnings Growth
AWK
8.1%
LNT
-5.8%

Financial Health

Debt/Equity
AWK
1.41
LNT
1.68
Current Ratio
AWK
0.42
LNT
0.8
Quick Ratio
AWK
0.31
LNT
0.49

Dividends

Dividend Yield
AWK
2.52%
LNT
2.81%
Payout Ratio
AWK
55.98%
LNT
64.65%

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
LNT NEUTRAL

LNT exhibits stable operational health with a Piotroski F-Score of 6/9, but faces a severe valuation disconnect. The current price of $73.10 trades at a massive premium to both the Graham Number ($44.89) and the growth-based Intrinsic Value ($21.98). While revenue growth remains healthy at 9%, the negative earnings growth (-5.8%) and a bearish technical trend (10/100) suggest the stock is currently overextended. The company remains a stable regulated utility, but the lack of earnings growth makes the current P/E multiple difficult to justify.

Strengths
Stable financial health indicated by a Piotroski F-Score of 6/9
Strong profit margins (18.57%) significantly exceeding the sector average (4.13%)
Consistent revenue growth of 9% YoY
Risks
Extreme valuation premium relative to Graham and Intrinsic value models
Negative earnings growth (-5.8% YoY) despite rising revenues
Very bearish technical trend (10/100) indicating strong downward momentum

Compare Another Pair

AWK vs LNT: Head-to-Head Comparison

This page compares American Water Works Company, Inc. (AWK) and Alliant Energy Corporation (LNT) 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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