York Water (NASDAQ:YORW) and Severn Trent (OTCMKTS:SVTRF) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for York Water and Severn Trent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
York Water 0 2 0 0 2.00
Severn Trent 0 0 0 0 N/A

York Water presently has a consensus price target of $36.00, indicating a potential upside of 7.30%. Given York Water’s higher possible upside, research analysts clearly believe York Water is more favorable than Severn Trent.

Institutional and Insider Ownership

36.7% of York Water shares are owned by institutional investors. 1.1% of York Water shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares York Water and Severn Trent’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
York Water $48.44 million 8.97 $13.38 million $1.04 32.26
Severn Trent N/A N/A N/A N/A N/A

York Water has higher revenue and earnings than Severn Trent.

Dividends

York Water pays an annual dividend of $0.69 per share and has a dividend yield of 2.1%. Severn Trent does not pay a dividend. York Water pays out 66.3% of its earnings in the form of a dividend. York Water has raised its dividend for 17 consecutive years.

Profitability

This table compares York Water and Severn Trent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
York Water 27.61% 10.85% 3.95%
Severn Trent N/A N/A N/A

Summary

York Water beats Severn Trent on 9 of the 10 factors compared between the two stocks.

About York Water

The York Water Company impounds, purifies, and distributes drinking water. It also owns and operates three wastewater collection systems and two wastewater treatment systems; and two reservoirs, including Lake Williams and Lake Redman, which together hold up to approximately 2.2 billion gallons of water. In addition, the company has a 15-mile pipeline from the Susquehanna River to Lake Redman; and owns seven wells that supply approximately 366,000 gallons of water per day to its customers in Carroll Valley Borough and Cumberland Township, Adams County. It serves customers in 39 municipalities within York County and 9 municipalities within Adams County, Pennsylvania. The company serves various customers in the fixture and furniture, electrical machinery, food product, paper, ordnance unit, textile product, air conditioning system, laundry detergent, barbell, and motorcycle industries. The York Water Company was founded in 1816 and is headquartered in York, Pennsylvania.

About Severn Trent

Severn Trent Plc operates as a water and sewerage company in the United Kingdom and internationally. The company operates through two segments, Regulated Water and Waste Water, and Business Services. The Regulated Water and Waste Water segment provides water and sewerage services to approximately 4.3 million households and businesses in the Midlands and mid-Wales. The Business Services segment provides contract services to municipal and industrial clients in the United Kingdom, Ireland, and the UK Ministry of Defence for the design, build, and operation of water and waste water treatment facilities and networks. This segment also generates renewable energy from anaerobic digestion, hydropower, wind turbines, and solar technology. Severn Trent Plc was founded in 1974 and is headquartered in Coventry, the United Kingdom.

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