Analyzing California Water Service Group (CWT) and Cadiz (CDZI)

California Water Service Group (NYSE: CWT) and Cadiz (NASDAQ:CDZI) are both small-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Dividends

California Water Service Group pays an annual dividend of $0.75 per share and has a dividend yield of 1.9%. Cadiz does not pay a dividend. California Water Service Group pays out 53.6% of its earnings in the form of a dividend. California Water Service Group has increased its dividend for 50 consecutive years.

Volatility and Risk

California Water Service Group has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares California Water Service Group and Cadiz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
California Water Service Group 9.38% 9.32% 2.40%
Cadiz -7,600.70% N/A -48.23%

Valuation & Earnings

This table compares California Water Service Group and Cadiz’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
California Water Service Group $666.89 million 2.81 $67.18 million $1.40 27.89
Cadiz $440,000.00 668.00 -$33.86 million N/A N/A

California Water Service Group has higher revenue and earnings than Cadiz.

Analyst Ratings

This is a summary of recent recommendations and price targets for California Water Service Group and Cadiz, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
California Water Service Group 2 4 0 0 1.67
Cadiz 0 0 1 0 3.00

California Water Service Group currently has a consensus target price of $33.75, suggesting a potential downside of 13.57%. Cadiz has a consensus target price of $18.00, suggesting a potential upside of 43.43%. Given Cadiz’s stronger consensus rating and higher probable upside, analysts plainly believe Cadiz is more favorable than California Water Service Group.

Insider & Institutional Ownership

70.7% of California Water Service Group shares are held by institutional investors. Comparatively, 48.4% of Cadiz shares are held by institutional investors. 1.0% of California Water Service Group 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 stock is poised for long-term growth.

Summary

California Water Service Group beats Cadiz on 9 of the 15 factors compared between the two stocks.

California Water Service Group Company Profile

California Water Service Group, through its subsidiaries, provides water utility and other related services in California, Washington, New Mexico, and Hawaii. It is involved in the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses, as well as for fire protection. The company offers its services to approximately 484,900 customers in 100 California communities; approximately 4,500 water and wastewater customers on the islands of Maui and Hawaii; approximately 16,800 customers in the Tacoma and Olympia areas in Washington; and approximately 8,100 water and wastewater customers in the Belen, Los Lunas, and Elephant Butte areas in New Mexico. It also engages in the provision of non-regulated water-related services, including operating municipally owned water systems, privately owned water, and recycled water distribution systems; providing operational and maintenance, meter reading, and billing services to private companies and municipalities; leasing communication antenna sites on its properties to telecommunication companies; billing optional third-party insurance programs to its residential customers; and providing lab services. California Water Service Group was founded in 1926 and is headquartered in San Jose, California.

Cadiz Company Profile

Cadiz Inc. operates as a land and water resource development company in the United States. It engages in the water resource, and land and agricultural development activities in San Bernardino County properties. The company owns approximately 34,500 acres of land in the Cadiz and Fenner valleys of eastern San Bernardino County; and approximately 11,000 acres of land in the eastern Mojave Desert portion of San Bernardino County. It is also involved in the cultivation of lemons and grapes/raisins, and spring and fall plantings of vegetables on the Cadiz Valley properties. Cadiz Inc. was founded in 1983 and is based in Los Angeles, California.

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