Manila Water (OTCMKTS:MWTCY – Get Rating) and Artesian Resources (NASDAQ:ARTNA – Get Rating) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Institutional & Insider Ownership
0.0% of Manila Water shares are held by institutional investors. Comparatively, 48.7% of Artesian Resources shares are held by institutional investors. 20.6% of Artesian Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Manila Water and Artesian Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manila Water | N/A | N/A | N/A |
| Artesian Resources | 17.36% | 9.24% | 2.44% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manila Water | N/A | N/A | N/A | C$58.75 | 0.15 |
| Artesian Resources | $98.90 million | 4.74 | $18.00 million | $1.81 | 27.24 |
Artesian Resources has higher revenue and earnings than Manila Water. Manila Water is trading at a lower price-to-earnings ratio than Artesian Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Manila Water and Artesian Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manila Water | 0 | 0 | 1 | 0 | 3.00 |
| Artesian Resources | 0 | 0 | 0 | 0 | N/A |
Dividends
Manila Water pays an annual dividend of C$6.40 per share and has a dividend yield of 73.9%. Artesian Resources pays an annual dividend of $1.14 per share and has a dividend yield of 2.3%. Manila Water pays out 10.9% of its earnings in the form of a dividend. Artesian Resources pays out 63.0% 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. Artesian Resources has increased its dividend for 2 consecutive years. Manila Water is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Artesian Resources beats Manila Water on 8 of the 12 factors compared between the two stocks.
About Manila Water
Manila Water Company, Inc., together with its subsidiaries, provides water treatment and distribution, sewerage, and sanitation services in the Philippines and internationally. It also offers integrated used water, pipework, engineering, procurement, and management services. The company provides its services to approximately six million people in the East Zone encompassing 23 cities and municipalities, including Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City, Parañaque, and Manila, as well as Rizal towns comprising Angono, Antipolo, Baras, Binangonan, Cainta, Cardona, Jala-Jala, Morong, Pililia, Rodriguez, San Mateo, Tanay, Taytay, and Teresa. It serves residential, commercial, semi-business, and industrial customers. The company was incorporated in 1997 and is based in Quezon City, the Philippines.
About Artesian Resources
Artesian Resources Corporation, through its subsidiaries, provides water, wastewater, and other services in Delaware, Maryland, and Pennsylvania. The company distributes and sells water to residential, commercial, industrial, governmental, municipal, and utility customers, as well as for public and private fire protection in the states of Delaware, Maryland, and Pennsylvania; and offers wastewater collection, treatment infrastructure, and wastewater services to customers in Delaware. It also provides contract water and wastewater services; water, sewer, and internal service line protection plans; and wastewater management services, as well as design, construction, and engineering services. In addition, the company offers services to other water utilities, including operations and billing functions; owns real estate properties, including land for office buildings, a water treatment plant, and wastewater facility; and provides design, installation, maintenance, and repair services related to existing or proposed storm water management systems. As of December 31, 2022, it served approximately 94,600 customers in Delaware; 2,600 customers in Maryland; and 40 customers in Pennsylvania through 1,442 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.
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