Contrasting York Water (NASDAQ:YORW) and American Energy Partners (OTCMKTS:AEPTD)

American Energy Partners (OTCMKTS:AEPTD) and York Water (NASDAQ:YORW) are both small-cap utilities companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

49.9% of York Water shares are owned by institutional investors. 0.5% of York Water shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

American Energy Partners has a beta of 2.92, meaning that its share price is 192% more volatile than the S&P 500. Comparatively, York Water has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares American Energy Partners and York Water’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Energy Partners	N/A	N/A	N/A
York Water	28.53%	9.91%	3.50%

Valuation & Earnings

This table compares American Energy Partners and York Water”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Energy Partners	N/A	N/A	N/A	N/A	N/A
York Water	$77.49 million	6.81	$20.06 million	$1.61	20.19

York Water has higher revenue and earnings than American Energy Partners.

Analyst Ratings

This is a breakdown of recent ratings for American Energy Partners and York Water, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Energy Partners	0	0	0	0	0.00
York Water	0	1	0	0	2.00

York Water has a consensus price target of $31.00, suggesting a potential downside of 4.62%. Given American Energy Partners’ higher possible upside, research analysts plainly believe American Energy Partners is more favorable than York Water.

Summary

York Water beats American Energy Partners on 7 of the 9 factors compared between the two stocks.

About American Energy Partners

American Energy Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. The company engages in the design, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. It also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services. The company is based in Allentown, Pennsylvania.

About York Water

The York Water Company impounds, purifies, and distributes drinking water. It owns and operates three wastewater collection systems; ten wastewater collection and treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which hold approximately 2.2 billion gallons of water. The company also operates a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns satellite groundwater systems in York, Adams, and Lancaster Counties, as well as two impounding dams on primary system located in York and Springfield Townships. It serves customers in the fixtures and furniture, electrical machinery, food products, paper, ordnance units, textile products, air conditioning systems, laundry detergents, barbells, and motorcycle industries in 56 municipalities within four counties in south-central Pennsylvania. The York Water Company was incorporated in 1816 and is based in York, Pennsylvania.