Cadiz (NASDAQ:CDZIP – Get Free Report) and American Water Works (NYSE:AWK – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
86.6% of American Water Works shares are owned by institutional investors. 0.1% of American Water Works shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Cadiz and American Water Works”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cadiz | $14.99 million | N/A | N/A | N/A | N/A |
| American Water Works | $5.14 billion | 5.22 | $1.11 billion | $5.77 | 23.40 |
American Water Works has higher revenue and earnings than Cadiz.
Profitability
This table compares Cadiz and American Water Works’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cadiz | N/A | N/A | N/A |
| American Water Works | 21.35% | 10.20% | 3.20% |
Analyst Recommendations
This is a summary of recent recommendations for Cadiz and American Water Works, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cadiz | 0 | 0 | 0 | 0 | 0.00 |
| American Water Works | 1 | 8 | 2 | 0 | 2.09 |
American Water Works has a consensus price target of $140.90, indicating a potential upside of 4.37%. Given American Water Works’ stronger consensus rating and higher possible upside, analysts plainly believe American Water Works is more favorable than Cadiz.
Dividends
Cadiz pays an annual dividend of $2.20 per share and has a dividend yield of 9.9%. American Water Works pays an annual dividend of $3.58 per share and has a dividend yield of 2.7%. American Water Works pays out 62.0% of its earnings in the form of a dividend. American Water Works has increased its dividend for 18 consecutive years.
Summary
American Water Works beats Cadiz on 10 of the 12 factors compared between the two stocks.
About Cadiz
Cadiz Inc., together with its subsidiaries, provides water solutions in the United States. The company operates through Land and Water Resources; and Water Filtration Technology segments. It offers water supply, water storage, water conveyance, and water filtration services. In addition, the company is involved in the cultivation of grain crops and alfalfa, as well as provides water filtration solutions for impaired or contaminated groundwater sources. It serves public water systems, government agencies, and other clients. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.
About American Water Works
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. It also provides water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. In addition, the company operates approximately 80 surface water treatment plants; 540 groundwater treatment plants; 175 wastewater treatment plants; 53,700 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,700 water and wastewater pumping stations; 1,100 treated water storage facilities; and 74 dams. The company was founded in 1886 and is headquartered in Camden, New Jersey.
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