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AWK vs CWT
Which Stock Would AI Choose? American Water Works Company, Inc. (AWK) vs. California Water Service Group (CWT) Stock Comparison
Key Takeaways
- Both AWK and CWT offer defensive positioning in the water utilities sector with yields around 2.8-3.0% and low betas under 0.75, appealing to income-focused investors amid market volatility.
- AWK, with a $25B market cap, dwarfs CWT's $2.5B scale, providing broader geographic diversification across regulated U.S. markets.
- Recent quarterly earnings showed AWK missing EPS (earnings per share) estimates while reaffirming guidance, contrasting CWT's steady revenue growth in core California operations.
- CWT trades at a lower forward P/E (price-to-earnings) ratio of about 18 versus AWK's 22, suggesting relative value for valuation-conscious traders.
- Year-to-date returns are comparable at roughly 1.5-1.7%, but CWT edges out on one-year performance at 13% versus AWK's 11%.
- Potential catalysts include AWK's proposed merger with Essential Utilities for expansion, while CWT benefits from regional rate adjustments.
Introduction
In the stable yet rate-sensitive water utilities sector, AWK and CWT stand out as key players providing essential services amid infrastructure demands and regulatory scrutiny. This comparison analyzes their business models, recent market activity, and relative performance to aid investors seeking defensive holdings with dividend reliability. Traders monitoring utilities for income or hedges against broader market swings will find insights into growth drivers, valuation trade-offs, and sentiment shifts in recent weeks, highlighting opportunities in a sector resilient to economic cycles.
AWK Overview and Recent Performance
American Water Works Company, Inc. (AWK) is the largest publicly traded U.S. water and wastewater utility, serving over 14 million people across 24 states through regulated operations. Its business emphasizes infrastructure investments and acquisitions for steady, rate-regulated revenue growth. In recent market activity, shares have traded in the mid-120s range after pulling back from 52-week highs near $150, reflecting broader sector pressures and a Q1 2026 earnings miss where EPS came in at $1.01 versus estimates of $1.09. Revenue rose year-over-year, supported by customer growth, and the company reaffirmed full-year EPS guidance of $6.02-$6.12. Sentiment has been influenced by a proposed $63 billion merger with Essential Utilities, under regulatory review, promising expanded scale but introducing execution risks. Dividend hikes and infrastructure focus bolster long-term positioning despite near-term volatility.
CWT Overview and Recent Performance
California Water Service Group (CWT) delivers water and wastewater services primarily in California, Hawaii, and New Mexico, operating as a regulated utility with a focus on residential and commercial customers. Its model relies on rate case approvals and operational efficiency in water-scarce regions. Recent weeks have seen shares stabilize around $42, near the lower end of the 52-week range of $41-$50, amid steady trading volumes. Q1 2026 results showed revenue of $214 million and net earnings of $4 million, driven by higher water production despite rising costs; analysts maintain an average price target of $52. Performance reflects resilience from rate adjustments and population stability, with a beta of 0.61 underscoring lower volatility. Dividend yield near 3% supports income appeal, though regional regulatory dependencies shape sentiment.
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Head-to-Head Comparison
AWK and CWT both thrive in regulated water utilities, but AWK’s national footprint contrasts CWT’s California-centric model, enabling superior scale and ROA (return on assets) at 3.5% versus 2.3%. Growth drivers differ: AWK pursues M&A (mergers and acquisitions), like its Essential deal, for infrastructure expansion, while CWT leverages rate cases amid steady demand. Recent momentum slightly favors CWT with a lower forward P/E and PEG (price/earnings-to-growth) ratio, trading at a discount despite comparable YTD returns. Risk factors include interest rate sensitivity and regulation for both, with AWK’s higher debt/equity (147% vs. 96%) adding leverage exposure. Sector-wise, both benefit from water scarcity trends, but market sentiment views CWT as undervalued per Zacks metrics.
Tickeron AI Verdict
Tickeron’s AI currently favors CWT over AWK based on superior relative valuation, including a lower forward P/E and stronger estimate revisions, alongside marginally better one-year momentum and lower volatility. While AWK offers scale and merger catalysts for potential upside, CWT’s positioning provides a higher probabilistic edge in trend-following models amid stable sector dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AWK is a StrongBuy and CWT is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AWK’s FA Score shows that 0 FA rating(s) are green whileCWT’s FA Score has 0 green FA rating(s).
- AWK’s FA Score: 0 green, 5 red.
- CWT’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AWK’s TA Score shows that 4 TA indicator(s) are bullish while CWT’s TA Score has 6 bullish TA indicator(s).
- AWK’s TA Score: 4 bullish, 5 bearish.
- CWT’s TA Score: 6 bullish, 4 bearish.
Price Growth
AWK (@Water Utilities) experienced а +3.58% price change this week, while CWT (@Water Utilities) price change was +0.53% for the same time period.
The average weekly price growth across all stocks in the @Water Utilities industry was -0.47%. For the same industry, the average monthly price growth was +3.11%, and the average quarterly price growth was +1.43%.
Reported Earning Dates
AWK is expected to report earnings on Jul 29, 2026.
CWT is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Water Utilities (-0.47% weekly)Water utilities operate water treatment plants, and/or distribute water to residential and commercial customers. Companies operating in this industry are largely responsible for the safe and timely distribution of water. While most water systems are local or regional, some of the companies might have operations across several states. The industry is expected to be closely monitored by regulators for quality checks on the water being distributed. Investing in upgrading infrastructure is a major factor in bolstering the supply of clean/safe-to-use water. Given the absolute necessity of water in our lives, the industry is largely non-cyclical. American Water Works Company, Inc., Aqua America, Inc., American States Water Co. and California Water Service Group are some of the major water utilities companies in the U.S.
| AWK | CWT | AWK / CWT | |
| Capitalization | 24.8B | 2.72B | 913% |
| EBITDA | 2.96B | 358M | 827% |
| Gain YTD | -1.423 | 6.322 | -23% |
| P/E Ratio | 22.49 | 22.68 | 99% |
| Revenue | 5.21B | 1.01B | 515% |
| Total Cash | 137M | 58.1M | 236% |
| Total Debt | 15.7B | 1.7B | 922% |
AWK | CWT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 72 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 61 Fair valued | 41 Fair valued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 71 | 80 | |
PRICE GROWTH RATING 1..100 | 59 | 51 | |
P/E GROWTH RATING 1..100 | 66 | 42 | |
SEASONALITY SCORE 1..100 | 75 | 31 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CWT's Valuation (41) in the Water Utilities industry is in the same range as AWK (61). This means that CWT’s stock grew similarly to AWK’s over the last 12 months.
CWT's Profit vs Risk Rating (100) in the Water Utilities industry is in the same range as AWK (100). This means that CWT’s stock grew similarly to AWK’s over the last 12 months.
AWK's SMR Rating (71) in the Water Utilities industry is in the same range as CWT (80). This means that AWK’s stock grew similarly to CWT’s over the last 12 months.
CWT's Price Growth Rating (51) in the Water Utilities industry is in the same range as AWK (59). This means that CWT’s stock grew similarly to AWK’s over the last 12 months.
CWT's P/E Growth Rating (42) in the Water Utilities industry is in the same range as AWK (66). This means that CWT’s stock grew similarly to AWK’s over the last 12 months.
| AWK | CWT | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 65% | N/A |
| Stochastic ODDS (%) | 2 days ago 57% | 2 days ago 62% |
| Momentum ODDS (%) | 2 days ago 48% | 2 days ago 50% |
| MACD ODDS (%) | 2 days ago 46% | 2 days ago 54% |
| TrendWeek ODDS (%) | 2 days ago 48% | 2 days ago 53% |
| TrendMonth ODDS (%) | 2 days ago 51% | 2 days ago 50% |
| Advances ODDS (%) | 2 days ago 47% | 12 days ago 53% |
| Declines ODDS (%) | 20 days ago 45% | 6 days ago 51% |
| BollingerBands ODDS (%) | 2 days ago 60% | 2 days ago 54% |
| Aroon ODDS (%) | 2 days ago 55% | 2 days ago 46% |
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AWK and
Correlation & Price change
A.I.dvisor indicates that over the last year, AWK has been closely correlated with WTRG. These tickers have moved in lockstep 89% of the time. This A.I.-generated data suggests there is a high statistical probability that if AWK jumps, then WTRG could also see price increases.
| Ticker / NAME | Correlation To AWK | 1D Price Change % | ||
|---|---|---|---|---|
| AWK | 100% | +0.44% | ||
| WTRG - AWK | 89% Closely correlated | +0.13% | ||
| AWR - AWK | 71% Closely correlated | -0.22% | ||
| CWT - AWK | 68% Closely correlated | -0.44% | ||
| MSEX - AWK | 62% Loosely correlated | -0.44% | ||
| HTO - AWK | 60% Loosely correlated | +0.25% | ||
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CWT and
Correlation & Price change
A.I.dvisor indicates that over the last year, CWT has been closely correlated with AWR. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if CWT jumps, then AWR could also see price increases.
| Ticker / NAME | Correlation To CWT | 1D Price Change % | ||
|---|---|---|---|---|
| CWT | 100% | -0.44% | ||
| AWR - CWT | 87% Closely correlated | -0.22% | ||
| HTO - CWT | 74% Closely correlated | +0.25% | ||
| MSEX - CWT | 71% Closely correlated | -0.44% | ||
| AWK - CWT | 70% Closely correlated | +0.44% | ||
| WTRG - CWT | 69% Closely correlated | +0.13% | ||
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