AWK vs SO

Valuation

Metric

AWK

SO

P/E Ratio

23.08

24.75

Forward P/E

21.26

19.73

P/B Ratio

2.32

3.02

P/S Ratio

4.99

3.67

EV/EBITDA

14.65

13.16

P/E Ratio

AWK

23.08

SO

24.75

Forward P/E

AWK

21.26

SO

19.73

P/B Ratio

AWK

2.32

SO

3.02

P/S Ratio

AWK

4.99

SO

3.67

EV/EBITDA

AWK

14.65

SO

13.16

Profitability

Metric

AWK

SO

Gross Margin

60.75%

48.47%

Operating Margin

42.59%

12.73%

Profit Margin

21.93%

14.69%

ROE

10.46%

11.04%

ROA

3.55%

3.28%

Gross Margin

AWK

60.75%

SO

48.47%

Operating Margin

AWK

42.59%

SO

12.73%

Profit Margin

AWK

21.93%

SO

14.69%

ROE

AWK

10.46%

SO

11.04%

ROA

AWK

3.55%

SO

3.28%

Growth

Metric

AWK

SO

Revenue Growth

9.7%

10.1%

Earnings Growth

8.1%

-22.1%

Revenue Growth

AWK

9.7%

SO

10.1%

Earnings Growth

AWK

8.1%

SO

-22.1%

Financial Health

Metric

AWK

SO

Debt/Equity

1.41

1.91

Current Ratio

0.42

0.65

Quick Ratio

0.31

0.34

Debt/Equity

AWK

1.41

SO

1.91

Current Ratio

AWK

0.42

SO

0.65

Quick Ratio

AWK

0.31

SO

0.34

Dividends

Metric

AWK

SO

Dividend Yield

2.52%

3.07%

Payout Ratio

55.98%

75.0%

Dividend Yield

AWK

2.52%

SO

3.07%

Payout Ratio

AWK

55.98%

SO

75.0%

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

SO NEUTRAL

SO shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths

Company has established market presence

Risks

Premium vs Graham Number ($53.27)

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Related Comparisons

AWK vs SO: Head-to-Head Comparison

This page compares American Water Works Company, Inc. (AWK) and The Southern Company (SO) 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.

AWK Full Analysis SO Full Analysis Stock Screener

Valuation

Profitability

Growth

Financial Health

Dividends

AI Verdict

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AWK vs SO: Head-to-Head Comparison

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