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AWK vs NGG

AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%
NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AWK
23.08
NGG
22.16
Forward P/E
AWK
21.26
NGG
14.7
P/B Ratio
AWK
2.32
NGG
8.96
P/S Ratio
AWK
4.99
NGG
5.09
EV/EBITDA
AWK
14.65
NGG
67.62

Profitability

Gross Margin
AWK
60.75%
NGG
100.0%
Operating Margin
AWK
42.59%
NGG
24.15%
Profit Margin
AWK
21.93%
NGG
16.43%
ROE
AWK
10.46%
NGG
7.87%
ROA
AWK
3.55%
NGG
3.22%

Growth

Revenue Growth
AWK
9.7%
NGG
-11.3%
Earnings Growth
AWK
8.1%
NGG
-12.4%

Financial Health

Debt/Equity
AWK
1.41
NGG
1.23
Current Ratio
AWK
0.42
NGG
0.97
Quick Ratio
AWK
0.31
NGG
0.75

Dividends

Dividend Yield
AWK
2.52%
NGG
3.48%
Payout Ratio
AWK
55.98%
NGG
77.96%

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
NGG BEARISH

National Grid (NGG) presents a stark divergence between its stable operational health and its current market valuation. While the Piotroski F-Score of 5/9 indicates a stable financial condition, the stock is trading at a massive premium, with a current price of $89.54 far exceeding the Graham Number ($30.15) and Intrinsic Value ($28.28). This valuation gap is compounded by negative YoY revenue (-11.30%) and earnings growth (-12.40%), suggesting the market is pricing in growth that is not supported by current data. Despite strong operating margins, the bearish technical trend and high payout ratio signal significant downside risk.

Strengths
Strong operating margin of 24.15%, significantly outperforming the sector average
Debt/Equity ratio (1.23) is lower than the utility sector average (1.58)
Stable financial health as indicated by a Piotroski F-Score of 5/9
Risks
Severe overvaluation relative to Graham Number ($30.15) and Intrinsic Value ($28.28)
Negative YoY revenue growth (-11.30%) and earnings growth (-12.40%)
Extremely high Price-to-Book ratio of 8.96, indicating a high premium over assets

Compare Another Pair

AWK vs NGG: Head-to-Head Comparison

This page compares American Water Works Company, Inc. (AWK) and National Grid plc (NGG) 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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