Analyzing Cadiz (NASDAQ:CDZIP) & American States Water (NYSE:AWR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American States Water	19.66%	13.06%	4.99%
Cadiz	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American States Water and Cadiz, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American States Water	0	2	1	0	2.33
Cadiz	0	0	0	0	0.00

Valuation & Earnings

This table compares American States Water and Cadiz”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American States Water	$679.25 million	4.89	$130.44 million	$3.43	24.71
Cadiz	$14.99 million	N/A	N/A	N/A	N/A

American States Water has higher revenue and earnings than Cadiz.

Insider & Institutional Ownership

75.2% of American States Water shares are owned by institutional investors. 0.9% of American States Water shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

American States Water pays an annual dividend of $2.18 per share and has a dividend yield of 2.6%. Cadiz pays an annual dividend of $2.20 per share and has a dividend yield of 9.8%. American States Water pays out 63.6% of its earnings in the form of a dividend. American States Water has increased its dividend for 71 consecutive years.

Summary

American States Water beats Cadiz on 9 of the 11 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 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.