Analyzing Cadiz (NASDAQ:CDZIP) & American Water Works (NYSE:AWK)

American Water Works (NYSE:AWK) and Cadiz (NASDAQ:CDZIP) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Water Works	$5.14 billion	5.19	$1.11 billion	$5.77	23.25
Cadiz	$14.99 million	N/A	N/A	N/A	N/A

American Water Works has higher revenue and earnings than Cadiz.

Institutional & Insider Ownership

86.6% of American Water Works shares are held by institutional investors. 0.1% of American Water Works shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

American Water Works pays an annual dividend of $3.58 per share and has a dividend yield of 2.7%. Cadiz pays an annual dividend of $2.20 per share and has a dividend yield of 9.9%. 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.

Analyst Ratings

This is a breakdown of recent ratings for American Water Works and Cadiz, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Water Works	1	8	2	0	2.09
Cadiz	0	0	0	0	0.00

American Water Works presently has a consensus price target of $140.90, suggesting a potential upside of 5.02%. Given American Water Works’ stronger consensus rating and higher probable upside, equities analysts clearly believe American Water Works is more favorable than Cadiz.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Water Works	21.35%	10.20%	3.20%
Cadiz	N/A	N/A	N/A

Summary

American Water Works beats Cadiz on 10 of the 12 factors compared between the two stocks.

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.

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.