Middlesex Water (NASDAQ: MSEX) and Cadiz (NASDAQ:CDZI) are both small-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Valuation & Earnings
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This table compares Middlesex Water and Cadiz’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Middlesex Water||$130.77 million||5.09||$22.80 million||$1.38||29.49|
Middlesex Water has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Middlesex Water, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Middlesex Water has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.
Middlesex Water pays an annual dividend of $0.89 per share and has a dividend yield of 2.2%. Cadiz does not pay a dividend. Middlesex Water pays out 64.5% of its earnings in the form of a dividend.
Insider & Institutional Ownership
50.7% of Middlesex Water shares are held by institutional investors. Comparatively, 48.9% of Cadiz shares are held by institutional investors. 3.5% of Middlesex Water shares are held by insiders. Comparatively, 5.6% of Cadiz shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Middlesex Water and Cadiz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Middlesex Water and Cadiz, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Middlesex Water presently has a consensus price target of $44.00, suggesting a potential upside of 8.13%. Cadiz has a consensus price target of $18.00, suggesting a potential upside of 41.73%. Given Cadiz’s stronger consensus rating and higher possible upside, analysts clearly believe Cadiz is more favorable than Middlesex Water.
Middlesex Water beats Cadiz on 9 of the 16 factors compared between the two stocks.
Middlesex Water Company Profile
Middlesex Water Company, together with its subsidiaries, owns and operates regulated water utility and wastewater systems. It operates in two segments, Regulated and Non-Regulated. The Regulated segment engages in collecting, treating, and distributing water on a retail and wholesale basis to residential, commercial, industrial, and fire protection customers in parts of New Jersey, Delaware, and Pennsylvania. This segment also includes regulated wastewater systems in New Jersey and Delaware. The Non-Regulated segment provides non-regulated contract services for the operation and maintenance of municipal and private water and wastewater systems in New Jersey and Delaware. Middlesex Water Company was founded in 1897 and is headquartered in Iselin, New Jersey.
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.