Reviewing Cadiz (NASDAQ:CDZI) and American States Water (NYSE:AWR)

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

Insider and Institutional Ownership

79.7% of Cadiz shares are held by institutional investors. Comparatively, 75.2% of American States Water shares are held by institutional investors. 2.3% of Cadiz shares are held by company insiders. Comparatively, 0.9% of American States Water shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadiz	$11.84 million	24.30	-$34.15 million	($0.50)	-6.77
American States Water	$658.07 million	5.38	$130.44 million	$3.65	24.48

American States Water has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than American States Water, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Cadiz has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, American States Water has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cadiz	-311.03%	-206.79%	-26.80%
American States Water	20.39%	13.19%	5.23%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadiz	2	0	1	0	1.67
American States Water	0	2	2	0	2.50

Cadiz currently has a consensus price target of $10.00, indicating a potential upside of 195.42%. American States Water has a consensus price target of $99.00, indicating a potential upside of 10.81%. Given Cadiz’s higher possible upside, equities research analysts clearly believe Cadiz is more favorable than American States Water.

Summary

American States Water beats Cadiz on 9 of the 14 factors compared between the two stocks.

About Cadiz

Cadiz Inc. is a California-based water solutions company focused on developing, managing and supplying sustainable water resources. The company owns land and water rights in the Mojave Desert and works to conserve, store, treat and convey groundwater for use by communities, businesses and agricultural customers. Its principal initiative is the Cadiz Water Project, which is designed to capture and conserve groundwater in the eastern Mojave Desert and deliver it to participating water agencies in Southern California through regional conveyance infrastructure.

About American States Water

American States Water Company is a holding company whose subsidiaries provide water, electric and wastewater services. Its regulated utility subsidiary, Golden State Water Company, delivers water to customers in communities across California and provides electric service in the Big Bear area through Bear Valley Electric Service. Through American States Utility Services, the company also operates and maintains water and wastewater systems at U.S. military installations under long-term contracts. These services include system operations, maintenance and infrastructure-related work.