Cadiz (NASDAQ: CDZI) and York Water (NASDAQ:YORW) are both small-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Risk & Volatility
Cadiz has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, York Water has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.
York Water pays an annual dividend of $0.67 per share and has a dividend yield of 2.2%. Cadiz does not pay a dividend. York Water pays out 66.3% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Cadiz and York Water’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|York Water||$48.59 million||8.07||$12.97 million||$1.01||30.20|
York Water has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than York Water, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
49.6% of Cadiz shares are owned by institutional investors. Comparatively, 34.3% of York Water shares are owned by institutional investors. 5.6% of Cadiz shares are owned by insiders. Comparatively, 1.1% of York Water shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Cadiz and York Water’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Cadiz and York Water, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cadiz currently has a consensus target price of $18.00, indicating a potential upside of 28.57%. Given Cadiz’s stronger consensus rating and higher probable upside, research analysts clearly believe Cadiz is more favorable than York Water.
Cadiz Inc. is a land and water resource development company. As of December 31, 2016, the Company had 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage and agriculture. As of December 31, 2016, the Company was focused on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project (Water Project or Project), which captures and conserves native groundwater being lost to evaporation from the aquifer system beneath its 34,000-acre property in the Cadiz and Fenner valleys of eastern San Bernardino County (the Cadiz/Fenner Property), and delivers it to water providers throughout Southern California. Its development activities include water resource and agricultural development at its San Bernardino County properties.
About York Water
The York Water Company is an investor-owned water utility in the United States. The primary business of the Company is to impound, purify to meet or exceed safe drinking water standards and distribute water. As of December 31, 2016, it also owned and operated three wastewater collection systems and two wastewater treatment systems. As of December 31, 2016, it operated within its territory, which covered 39 municipalities within York County, Pennsylvania and nine municipalities within Adams County, Pennsylvania. Its two wastewater treatment facilities are located in East Manchester and Lower Windsor Townships. It provides sewer billing services. It has a service line protection program, which allows customers to pay a fixed monthly fee, and it will repair or replace damaged customer service lines. As of December 31, 2016, it obtained the bulk of its water supply from both the South Branch and East Branch of the Codorus Creek, which together had a daily flow of 73 million gallons.
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