Head to Head Comparison: American Water Works (NYSE:AWK) versus American Energy Partners (OTCMKTS:AEPTD)

American Energy Partners (OTCMKTS:AEPTD) and American Water Works (NYSE:AWK) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Insider & Institutional Ownership

86.6% of American Water Works shares are held by institutional investors. 0.1% of American Water Works shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares American Energy Partners and American Water Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Energy Partners	N/A	N/A	N/A
American Water Works	21.35%	10.20%	3.20%

Valuation & Earnings

This table compares American Energy Partners and American Water Works”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Energy Partners	N/A	N/A	N/A	N/A	N/A
American Water Works	$5.14 billion	5.31	$1.11 billion	$5.77	23.79

American Water Works has higher revenue and earnings than American Energy Partners.

Analyst Ratings

This is a breakdown of current recommendations for American Energy Partners and American Water Works, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Energy Partners	0	0	0	0	0.00
American Water Works	1	8	1	0	2.00

American Water Works has a consensus target price of $138.78, indicating a potential upside of 1.11%. Given American Water Works’ stronger consensus rating and higher probable upside, analysts plainly believe American Water Works is more favorable than American Energy Partners.

Volatility and Risk

American Energy Partners has a beta of 2.92, indicating that its share price is 192% more volatile than the S&P 500. Comparatively, American Water Works has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

American Water Works beats American Energy Partners on 9 of the 10 factors compared between the two stocks.

About American Energy Partners

American Energy Partners, Inc., through its subsidiaries, sources, treats, and distributes reclaimed water in the United States. The company engages in the design, construction, and operation of regional water treatment facilities that serve industrial, energy, and government sectors. It also focuses on drilling, operating, and partnership opportunities in the upstream oil and gas space. It also provides geotechnical services. The company is based in Allentown, Pennsylvania.

About American Water Works

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems. It also provides water and wastewater services on military installations; and undertakes contracts with municipal customers, primarily to operate and manage water and wastewater facilities, as well as offers other related services. In addition, the company operates approximately 80 surface water treatment plants; 540 groundwater treatment plants; 175 wastewater treatment plants; 53,700 miles of transmission, distribution, and collection mains and pipes; 1,200 groundwater wells; 1,700 water and wastewater pumping stations; 1,100 treated water storage facilities; and 74 dams. The company was founded in 1886 and is headquartered in Camden, New Jersey.