American States Water (AWR) vs. The Competition Financial Comparison

American States Water (NYSE: AWR) is one of 15 public companies in the “Water supply” industry, but how does it compare to its competitors? We will compare American States Water to similar companies based on the strength of its valuation, risk, earnings, analyst recommendations, profitability, dividends and institutional ownership.

Insider and Institutional Ownership

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66.2% of American States Water shares are owned by institutional investors. Comparatively, 49.2% of shares of all “Water supply” companies are owned by institutional investors. 1.5% of American States Water shares are owned by insiders. Comparatively, 11.2% of shares of all “Water supply” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares American States Water and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American States Water 15.74% 13.50% 4.77%
American States Water Competitors 8.09% 8.85% 2.61%

Risk & Volatility

American States Water has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, American States Water’s competitors have a beta of 0.51, suggesting that their average stock price is 49% less volatile than the S&P 500.

Dividends

American States Water pays an annual dividend of $1.02 per share and has a dividend yield of 1.9%. American States Water pays out 59.6% of its earnings in the form of a dividend. As a group, “Water supply” companies pay a dividend yield of 2.2% and pay out 53.9% of their earnings in the form of a dividend. American States Water has raised its dividend for 63 consecutive years. American States Water lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for American States Water and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American States Water 1 1 0 0 1.50
American States Water Competitors 86 221 250 13 2.33

American States Water presently has a consensus price target of $48.00, suggesting a potential downside of 8.76%. As a group, “Water supply” companies have a potential upside of 8.04%. Given American States Water’s competitors stronger consensus rating and higher probable upside, analysts plainly believe American States Water has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares American States Water and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
American States Water $440.60 million $69.36 million 30.77
American States Water Competitors $722.21 million $111.68 million 23.06

American States Water’s competitors have higher revenue and earnings than American States Water. American States Water is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

American States Water competitors beat American States Water on 10 of the 15 factors compared.

American States Water Company Profile

American States Water Company, through its subsidiaries, provides water and electric services to residential, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. The company purchases, produces, distributes, and sells water, as well as distributes electricity. As of February 26, 2018, it provided water service to approximately 259,000 customers located throughout 10 counties in Northern, Coastal, and Southern California; and distributed electricity to 24,000 customers in the City of Big Bear and surrounding areas in San Bernardino County, California. The company also provides water and/or wastewater services, including the operation, maintenance, and construction of facilities at the water and/or wastewater systems at various military installations. American States Water Company was founded in 1929 and is based in San Dimas, California.

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