York Water (NASDAQ:YORW) vs. Global Water Resources (NASDAQ:GWRS) Critical Survey

York Water (NASDAQ:YORW) and Global Water Resources (NASDAQ:GWRS) are both small-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Dividends

York Water pays an annual dividend of $0.91 per share and has a dividend yield of 2.9%. Global Water Resources pays an annual dividend of $0.30 per share and has a dividend yield of 4.4%. York Water pays out 54.8% of its earnings in the form of a dividend. Global Water Resources pays out 375.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. York Water has increased its dividend for 27 consecutive years and Global Water Resources has increased its dividend for 8 consecutive years.

Risk and Volatility

York Water has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Global Water Resources has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for York Water and Global Water Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
York Water	0	3	0	1	2.50
Global Water Resources	1	2	0	0	1.67

York Water presently has a consensus target price of $32.20, indicating a potential upside of 1.69%. Global Water Resources has a consensus target price of $15.00, indicating a potential upside of 119.14%. Given Global Water Resources’ higher probable upside, analysts clearly believe Global Water Resources is more favorable than York Water.

Earnings & Valuation

This table compares York Water and Global Water Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
York Water	$87.39 million	5.88	$20.06 million	$1.66	19.08
Global Water Resources	$55.76 million	3.67	$2.96 million	$0.08	85.56

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

Insider & Institutional Ownership

49.9% of York Water shares are held by institutional investors. Comparatively, 27.9% of Global Water Resources shares are held by institutional investors. 0.5% of York Water shares are held by insiders. Comparatively, 53.7% of Global Water Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares York Water and Global Water Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
York Water	29.07%	9.45%	3.64%
Global Water Resources	3.98%	2.06%	0.37%

Summary

York Water beats Global Water Resources on 12 of the 17 factors compared between the two stocks.

About York Water

The York Water Company is an investor-owned utility that provides water and wastewater services in south-central Pennsylvania. Its water operations include collecting, treating and distributing water to residential, commercial and industrial customers. The company also provides wastewater collection and treatment services. Its service area is centered in York County and extends into parts of neighboring counties. Founded in 1816, York Water is widely recognized as one of the oldest investor-owned water utilities in the United States.

About Global Water Resources

Global Water Resources, Inc. is a water resource management company that owns and operates water, wastewater and recycled water utilities in Arizona. Its services include supplying potable water, collecting and treating wastewater, and providing recycled water for non-potable uses. The company serves communities in the Phoenix and Tucson metropolitan areas. Its integrated “Total Water Management” approach connects water, wastewater and recycled water services to support efficient use and reuse of local water supplies.