Aqua America (WTR) reported its Q3 earning on November 6. The report did almost not move the needle, which is not that uncommon in the water-utility space.
Cash flows are easy to predict and management gives guidance with a low spread. Just like the companies closest peer, American Water Works (AWK), management narrowed the lower end of the company’s F18 guidance.
Both Aqua America and American Water Works narrowed the lower end of their FY18 guidance.
Aqua America shows a higher organic growth rate, which is important for a water utility.
Over the past years, American Water Works has increased its total customers at a higher rate than Aqua America.
American Water Works also caused less share dilution than Aqua America.
For now, I prefer American Water Works over Aqua America.