EN DE
STOCK COMPARISON

Essential Utilities vs American Water Works: Fair Value & Quality

Both stocks run through our valuation models. Here is how Essential Utilities (WTRG) and American Water Works (AWK) compare, as of Aug 8, 2026.

As of Aug 8, 2026, Fair Value Calculator sees Essential Utilities as the less overvalued of the two: Essential Utilities trades at $39.88 versus a fair value of $21.81 (-45%), while American Water Works trades at $135 versus $65.80 (-51%).
Essential Utilities
WTRG · USD · Utilities
-45%
upside to fair value
overvalued
Price$39.88
Fair Value$21.81
Quality50/100
American Water Works
AWK · USD · Utilities
-51%
upside to fair value
overvalued
Price$135
Fair Value$65.80
Quality48/100

Head-to-head numbers

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

Essential UtilitiesAmerican Water Works
Valuation
19.7×P/E (TTM)22.9×
4.29×P/S (TTM)5.04×
1.60×P/B2.42×
14.4×EV/EBITDA13.7×
3.67×PEG2.51×
3.5%Dividend yield2.6%
$1.35Dividend per share$3.31
Profitability
22%Net margin21%
36%Operating margin33%
8%Return on equity10%
3%Return on assets4%
Growth
10%Revenue growth (YoY)6%
2.6%Avg. growth/yr (3Y)10.7%
11.1%Avg. growth/yr (5Y)6.4%
Balance & size
1.18×Debt / equity1.18×
$11BMarket cap$26B
expensiveGrowth qualitymixed

Essential Utilities leads: 8 to 6 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.

Essential Utilitiesof which business quality 38 · market factors 62 American Water Worksof which business quality 38 · market factors 57
ProfitabilityMargins and returns on capital today
37
36
Quality GrowthAre margins and returns improving?
37
33
CashflowEarnings quality: real cash, not paper profit
44
48
Fin. StrengthBalance sheet, leverage, solvency risk
21
18
InvestmentDisciplined investing over empire-building
39
31
Low VolatilityCalm price path (market factor)
87
88
MomentumPrice trend over the last 3–12 months (market factor)
47
44
52W MomentumDistance to the 52-week high (market factor)
59
44
Net IssuanceBuybacks instead of dilution
59
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.

Essential Utilities

Earnings-Based$19.49
Dividend Discount$23.19
Multiples$32.87
Asset-Based$16.20
Economic Profit$13.36
Growth Earnings$34.54

13 of 15 models see the stock below the current price.

American Water Works

Earnings-Based$34.02
Dividend Discount$54.96
Multiples$103
Asset-Based$37.18
Economic Profit$39.66
Growth Earnings$99.38

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.

Essential Utilities
Bear $16.36Fair Value $21.81Bull $31.61
$39.88 = current price (white tick)
American Water Works
Bear $49.35Fair Value $65.80Bull $99.51
$135 = current price (white tick)

Compare two other stocks

Tap a field and type again, ticker or company name.

Free, no sign-up

Ranked within their sector

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

Essential Utilities · Utilities

Quality score50 · above median
Fair value upside-45% · bottom 25%

American Water Works · Utilities

Quality score48 · below median
Fair value upside-51% · bottom 25%

Bottom line

As of Aug 8, 2026, Fair Value Calculator sees Essential Utilities as the less overvalued of the two: Essential Utilities trades at $39.88 versus a fair value of $21.81 (-45%), while American Water Works trades at $135 versus $65.80 (-51%).

Essential Utilities has the higher quality score (50/100).

See the full analysis →
Essential Utilities · American Water Works

More comparisons

Popular match-ups from the same sectors, all with fair value and quality score.

Related to Essential Utilities

Alphabet Inc Class C vs Verizon CommunicationsAlphabet Inc Class C vs At&tAlphabet Inc Class C vs NetEaseAmazon.com vs Toyota Motor Corporation

Related to American Water Works

Amazon.com vs PDD HoldingsAmazon.com vs Sony GroupMeta Platforms vs Verizon CommunicationsMeta Platforms vs At&t
Free · Top-25 report

See the undervalued quality stocks every month

Just your email for the monthly Top-25 report of the most undervalued quality stocks, with fair value, quality and price target. Plus 14 days of Pro to try, no card.

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click. Not financial advice.

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