Head to Head Comparison: Consolidated Water (NASDAQ:CWCO) versus American States Water (NYSE:AWR)

American States Water (NYSE:AWR) and Consolidated Water (NASDAQ:CWCO) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Dividends

American States Water pays an annual dividend of $2.18 per share and has a dividend yield of 2.5%. Consolidated Water pays an annual dividend of $0.56 per share and has a dividend yield of 2.0%. American States Water pays out 59.7% of its earnings in the form of a dividend. Consolidated Water pays out 67.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American States Water has raised its dividend for 71 consecutive years and Consolidated Water has raised its dividend for 2 consecutive years. American States Water is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

American States Water has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Consolidated Water has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Valuation and Earnings

This table compares American States Water and Consolidated Water”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American States Water	$658.07 million	5.29	$130.44 million	$3.65	24.05
Consolidated Water	$132.07 million	3.32	$18.34 million	$0.83	33.02

American States Water has higher revenue and earnings than Consolidated Water. American States Water is trading at a lower price-to-earnings ratio than Consolidated Water, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American States Water and Consolidated Water’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American States Water	20.52%	13.50%	5.26%
Consolidated Water	12.66%	7.23%	6.36%

Institutional and Insider Ownership

75.2% of American States Water shares are owned by institutional investors. Comparatively, 55.2% of Consolidated Water shares are owned by institutional investors. 0.9% of American States Water shares are owned by company insiders. Comparatively, 5.8% of Consolidated Water shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for American States Water and Consolidated Water, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American States Water	0	2	1	0	2.33
Consolidated Water	0	2	0	0	2.00

Summary

American States Water beats Consolidated Water on 12 of the 16 factors compared between the two stocks.

About American States Water

American States Water Company, through its subsidiaries, provides water and electric services to residential, commercial, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. The company purchases, produces, distributes, and sells water, as well as distributes electricity. As of December 31, 2022, American States Water Company provided water service to 263,265 customers located throughout 10 counties in the State of California; and distributed electricity to 24,705 customers in San Bernardino County mountain communities in California. The company also provides water and/or wastewater services, including the operation, maintenance, and construction of facilities at the water and/or wastewater systems at various military installations. American States Water Company was incorporated in 1929 and is headquartered in San Dimas, California.

About Consolidated Water

Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. The company produces potable water from seawater utilizing reverse osmosis technology and supply water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It offers design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.