H2O Innovation (OTCMKTS:HEOFF – Get Free Report) and American States Water (NYSE:AWR – Get Free Report) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Analyst Ratings
This is a summary of current recommendations for H2O Innovation and American States Water, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H2O Innovation | 0 | 0 | 0 | 0 | 0.00 |
| American States Water | 0 | 2 | 1 | 0 | 2.33 |
Volatility & Risk
H2O Innovation has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, American States Water has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| H2O Innovation | -0.68% | 5.82% | 2.73% |
| American States Water | 20.52% | 13.77% | 5.30% |
Earnings and Valuation
This table compares H2O Innovation and American States Water”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H2O Innovation | $189.12 million | 1.48 | -$970,000.00 | ($0.01) | -312.01 |
| American States Water | $697.48 million | 4.89 | $130.44 million | $3.65 | 23.85 |
American States Water has higher revenue and earnings than H2O Innovation. H2O Innovation is trading at a lower price-to-earnings ratio than American States Water, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
75.2% of American States Water shares are owned by institutional investors. 4.9% of H2O Innovation shares are owned by company insiders. Comparatively, 0.9% of American States Water shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
American States Water beats H2O Innovation on 12 of the 13 factors compared between the two stocks.
About H2O Innovation
H2O Innovation Inc. designs and provides integrated water treatment solutions based on membrane filtration technology. It operates through three segments: Water Technologies and Services, Specialty Products, and Operation and Maintenance Services. The company offers membrane filtration technology for municipal, industrial, energy, and natural resources end-users; and aftersales services, as well as digital solutions to monitor and optimize water treatment plants. Its products include the FiberFlex open-source technologies for water treatment systems; the flexMBR for wastewater treatment systems; SILO system for wastewater and water reuse treatment; and FlexBox, a mobile fleet of water and wastewater treatment systems, such as containerized ultrafiltration or reverse osmosis (RO) systems. The company also offers specialty chemicals, consumables, and specialized products for the water industry, including RO membrane chemicals, such as antiscalants, flocculants, biocides, and cleaning chemicals; corrosion resistant equipment for desalination plants; flexible grooved-end couplings, fiberglass reinforced polyester cartridge filter housings, self-cleaning disc and screen filters, bag filters, cartridges, and strainers; and maple farming equipment. In addition, it operates, maintains, and repairs water and wastewater treatment systems, distribution equipment, and associated assets. The company was incorporated in 1995 and is headquartered in Quebec City, Canada. As of December 8, 2023, H2O Innovation Inc. was taken private.
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.
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