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STOCK COMPARISON

Pennon Group vs American Water Works: Fair Value & Quality

Both stocks run through our valuation models. Here is how Pennon Group (PNN) and American Water Works (AWK) compare, as of Aug 10, 2026.

As of Aug 10, 2026, Fair Value Calculator sees Pennon Group as the less overvalued of the two: Pennon Group trades at £4.94 versus a fair value of £2.81 (-43%), while American Water Works trades at $135 versus $65.80 (-51%).
Pennon Group
PNN.LSE · GBP · Utilities
-43%
upside to fair value
overvalued
Price£4.94
Fair Value£2.81
Quality28/100
American Water Works
AWK · USD · Utilities
-51%
upside to fair value
overvalued
Price$135
Fair Value$65.80
Quality41/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Pennon GroupAmerican Water Works
Valuation
26.0×P/E (TTM)22.9×
2.44×P/S (TTM)5.04×
2.23×P/B2.42×
12.7×EV/EBITDA13.7×
8.20×PEG2.51×
6.0%Dividend yield2.6%
£0.29Dividend per share$3.31
Profitability
7%Net margin21%
25%Operating margin33%
6%Return on equity10%
3%Return on assets4%
Growth
22%Revenue growth (YoY)6%
17.4%Avg. growth/yr (3Y)10.7%
15.7%Avg. growth/yr (5Y)6.4%
Balance & size
2.60×Debt / equity1.18×
$3BMarket cap$26B
expensiveGrowth qualitymixed

Even match: 7 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Pennon Groupof which business quality 29 · market factors 43 American Water Worksof which business quality 38 · market factors 58
ProfitabilityMargins and returns on capital today
24
36
Quality GrowthAre margins and returns improving?
65
33
CashflowEarnings quality: real cash, not paper profit
49
48
Fin. StrengthBalance sheet, leverage, solvency risk
9
18
InvestmentDisciplined investing over empire-building
32
31
Low VolatilityCalm price path (market factor)
85
88
MomentumPrice trend over the last 3–12 months (market factor)
28
45
52W MomentumDistance to the 52-week high (market factor)
22
45
Net IssuanceBuybacks instead of dilution
0
70

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Pennon Group

Earnings-Based£1.33
Dividend Discount£4.53
Multiples£3.30
Asset-Based£2.00
Economic Profit£2.48
Growth Earnings£3.18

12 of 13 models see the stock below the current price.

American Water Works

Earnings-Based$34.02
Dividend Discount$54.96
Multiples$78.34
Asset-Based$37.18
Economic Profit$39.66
Growth Earnings$90.46

16 of 16 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Pennon Group
Bear £2.10Fair Value £2.81Bull £3.50
£4.94 = current price (white tick)
American Water Works
Bear $49.35Fair Value $65.80Bull $99.51
$135 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Pennon Group · Utilities

Quality score28 · bottom 25%
Fair value upside-43% · below median

American Water Works · Utilities

Quality score41 · below median
Fair value upside-51% · bottom 25%

Bottom line

As of Aug 10, 2026, Fair Value Calculator sees Pennon Group as the less overvalued of the two: Pennon Group trades at £4.94 versus a fair value of £2.81 (-43%), while American Water Works trades at $135 versus $65.80 (-51%).

American Water Works has the higher quality score (41/100).

See the full analysis →
Pennon Group · American Water Works

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.