Essential Utilities (NYSE:WTRG) & Middlesex Water (NASDAQ:MSEX) Head-To-Head Survey

Middlesex Water (NASDAQ:MSEX) and Essential Utilities (NYSE:WTRG) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Earnings & Valuation

This table compares Middlesex Water and Essential Utilities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlesex Water	$212.25 million	5.27	$42.82 million	$2.77	21.12
Essential Utilities	$2.47 billion	5.20	$616.37 million	$1.99	22.57

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

Analyst Ratings

This is a summary of current ratings and target prices for Middlesex Water and Essential Utilities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlesex Water	0	3	0	1	2.50
Essential Utilities	1	0	4	0	2.60

Middlesex Water currently has a consensus price target of $60.75, indicating a potential upside of 3.86%. Essential Utilities has a consensus price target of $44.75, indicating a potential downside of 0.37%. Given Middlesex Water’s higher probable upside, analysts plainly believe Middlesex Water is more favorable than Essential Utilities.

Dividends

Middlesex Water pays an annual dividend of $1.52 per share and has a dividend yield of 2.6%. Essential Utilities pays an annual dividend of $1.44 per share and has a dividend yield of 3.2%. Middlesex Water pays out 54.9% of its earnings in the form of a dividend. Essential Utilities pays out 72.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Middlesex Water has raised its dividend for 52 consecutive years and Essential Utilities has raised its dividend for 32 consecutive years.

Insider and Institutional Ownership

79.5% of Middlesex Water shares are owned by institutional investors. Comparatively, 74.8% of Essential Utilities shares are owned by institutional investors. 1.9% of Middlesex Water shares are owned by insiders. Comparatively, 0.4% of Essential Utilities shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Middlesex Water and Essential Utilities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlesex Water	24.50%	10.08%	3.69%
Essential Utilities	21.79%	8.36%	2.93%

Volatility & Risk

Middlesex Water has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Essential Utilities has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Summary

Middlesex Water beats Essential Utilities on 12 of the 18 factors compared between the two stocks.

About Middlesex Water

Middlesex Water Company is a regulated water utility that provides water and wastewater services. Its operations include sourcing, treating and distributing water, as well as wastewater collection and treatment. Founded in 1897, the company serves customers in New Jersey and Delaware through its regulated utility subsidiaries. Its New Jersey operations focus on central New Jersey, while Tidewater Utilities serves communities in Delaware. Middlesex Water also provides contract operations and maintenance services for municipal and private water and wastewater systems through its subsidiaries.

About Essential Utilities

Essential Utilities, Inc. is a regulated utility company that provides water and wastewater services through its Aqua operations and natural gas distribution through Peoples Natural Gas. Its services include treating and delivering drinking water, collecting and treating wastewater, and supplying natural gas to homes and businesses. The company traces its water utility roots to the Springfield Water Company, founded in Pennsylvania in 1886. It adopted the Essential Utilities name in 2020, following its acquisition of Peoples Natural Gas and the expansion of its business beyond water and wastewater services.