Head to Head Comparison: Global Water Resources (GWRS) & Pure Cycle (PCYO)

Global Water Resources (NASDAQ: GWRS) and Pure Cycle (NASDAQ:PCYO) are both small-cap utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

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16.9% of Global Water Resources shares are held by institutional investors. Comparatively, 67.9% of Pure Cycle shares are held by institutional investors. 49.2% of Global Water Resources shares are held by insiders. Comparatively, 4.8% of Pure Cycle shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Global Water Resources and Pure Cycle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Global Water Resources 14.14% 14.91% 0.87%
Pure Cycle -72.21% -2.14% -2.08%

Risk and Volatility

Global Water Resources has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500. Comparatively, Pure Cycle has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Valuation & Earnings

This table compares Global Water Resources and Pure Cycle’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Global Water Resources $31.21 million 5.64 $4.55 million $0.12 74.67
Pure Cycle $1.22 million 175.20 -$1.71 million N/A N/A

Global Water Resources has higher revenue and earnings than Pure Cycle.

Dividends

Global Water Resources pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. Pure Cycle does not pay a dividend. Global Water Resources pays out 233.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations for Global Water Resources and Pure Cycle, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Global Water Resources 0 0 1 0 3.00
Pure Cycle 0 0 1 0 3.00

Global Water Resources presently has a consensus price target of $11.00, suggesting a potential upside of 22.77%. Given Global Water Resources’ higher possible upside, equities analysts clearly believe Global Water Resources is more favorable than Pure Cycle.

Summary

Global Water Resources beats Pure Cycle on 8 of the 12 factors compared between the two stocks.

Global Water Resources Company Profile

Global Water Resources, Inc., a water resource management company, owns, operates, and manages regulated water, wastewater, and recycled water utilities primarily in metropolitan Phoenix, Arizona. As of December 31, 2017, it served approximately 51,000 people in approximately 20,000 homes. The company was founded in 2003 and is based in Phoenix, Arizona.

Pure Cycle Company Profile

Pure Cycle Corporation is an integrated water company that provides wholesale water and wastewater services. The Company provides its services to wholesale customers, which include industrial customers and local governmental entities that provide water and wastewater services to their end-use customers located in the Denver, Colorado metropolitan area. The Company is engaged in selling water service to customers, using water rights owned or controlled by the Company and developing infrastructure to divert, treat and distribute that water and collect, treat and reuse wastewater. The Company owns a portfolio of water rights located in the Denver, Colorado metropolitan area, Southeastern Colorado in the Arkansas River, and the Western Slope of Colorado in the Colorado River. The Company’s Denver area assets include Rangeview Water, the Lowry Range Property, Sky Ranch and Arapahoe County Fairgrounds.

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