Analyzing American Energy Partners (OTCMKTS:AEPTD) and York Water (NASDAQ:YORW)

York Water (NASDAQ:YORW) and American Energy Partners (OTCMKTS:AEPTD) are both small-cap utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

49.9% of York Water shares are held by institutional investors. 0.5% of York Water shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for York Water and American Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
York Water	0	1	0	0	2.00
American Energy Partners	0	0	0	0	0.00

York Water currently has a consensus price target of $31.00, suggesting a potential downside of 4.62%. Given American Energy Partners’ higher probable upside, analysts clearly believe American Energy Partners is more favorable than York Water.

Profitability

This table compares York Water and American Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
York Water	28.53%	9.91%	3.50%
American Energy Partners	N/A	N/A	N/A

Risk and Volatility

York Water has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, American Energy Partners has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500.

Valuation and Earnings

This table compares York Water and American Energy Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
York Water	$77.49 million	6.81	$20.06 million	$1.61	20.19
American Energy Partners	N/A	N/A	N/A	N/A	N/A

York Water has higher revenue and earnings than American Energy Partners.

Summary

York Water beats American Energy Partners on 7 of the 9 factors compared between the two stocks.

About York Water

The York Water Company impounds, purifies, and distributes drinking water. It owns and operates three wastewater collection systems; ten wastewater collection and treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which hold approximately 2.2 billion gallons of water. The company also operates a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns satellite groundwater systems in York, Adams, and Lancaster Counties, as well as two impounding dams on primary system located in York and Springfield Townships. It serves customers in the fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries in 56 municipalities within four counties in south-central Pennsylvania. The York Water Company was incorporated in 1816 and is based in York, Pennsylvania.

About American Energy Partners

American Energy Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. The company engages in the design, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. It also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services. The company is based in Allentown, Pennsylvania.