York Water (NASDAQ: YORW) and Cadiz (NASDAQ:CDZI) are both small-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional & Insider Ownership
33.6% of York Water shares are held by institutional investors. Comparatively, 49.0% of Cadiz shares are held by institutional investors. 1.1% of York Water shares are held by insiders. Comparatively, 5.6% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
York Water has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.
York Water pays an annual dividend of $0.67 per share and has a dividend yield of 2.3%. Cadiz does not pay a dividend. York Water pays out 69.1% of its earnings in the form of a dividend.
This table compares York Water and Cadiz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for York Water and Cadiz, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cadiz has a consensus target price of $18.00, suggesting a potential upside of 29.03%. Given Cadiz’s higher possible upside, analysts plainly believe Cadiz is more favorable than York Water.
Valuation and Earnings
This table compares York Water and Cadiz’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|York Water||$47.58 million||7.92||$11.84 million||$0.97||30.21|
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.
York Water beats Cadiz on 8 of the 15 factors compared between the two stocks.
York Water Company Profile
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.
Cadiz Company Profile
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.
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