Analyzing Consolidated Water (CWCO) and Its Rivals

Consolidated Water (NASDAQ: CWCO) is one of 15 public companies in the “Water supply” industry, but how does it contrast to its rivals? We will compare Consolidated Water to similar businesses based on the strength of its institutional ownership, analyst recommendations, earnings, profitability, dividends, risk and valuation.

Insider & Institutional Ownership

51.7% of Consolidated Water shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Water supply” companies are owned by institutional investors. 3.2% of Consolidated Water shares are owned by company insiders. Comparatively, 11.1% of shares of all “Water supply” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Consolidated Water and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Consolidated Water 9.87% 5.36% 5.03%
Consolidated Water Competitors 10.39% 8.88% 2.64%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Consolidated Water and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Consolidated Water 0 0 1 0 3.00
Consolidated Water Competitors 88 225 256 13 2.33

Consolidated Water presently has a consensus price target of $17.00, indicating a potential upside of 18.88%. As a group, “Water supply” companies have a potential downside of 0.28%. Given Consolidated Water’s stronger consensus rating and higher probable upside, analysts clearly believe Consolidated Water is more favorable than its rivals.

Volatility & Risk

Consolidated Water has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Consolidated Water’s rivals have a beta of 0.51, indicating that their average stock price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares Consolidated Water and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Consolidated Water $62.31 million $6.14 million 29.18
Consolidated Water Competitors $722.21 million $111.64 million 23.90

Consolidated Water’s rivals have higher revenue and earnings than Consolidated Water. Consolidated Water is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Consolidated Water pays an annual dividend of $0.34 per share and has a dividend yield of 2.4%. Consolidated Water pays out 69.4% of its earnings in the form of a dividend. As a group, “Water supply” companies pay a dividend yield of 2.1% and pay out 55.9% of their earnings in the form of a dividend.

Summary

Consolidated Water beats its rivals on 8 of the 15 factors compared.

About Consolidated Water

Consolidated Water Co. Ltd. develops and operates seawater desalination plants (that utilize reverse osmosis technology) and water distribution systems in areas where naturally occurring supplies of potable water are scarce or non-existent. The Company operates in three segments: retail water operations, bulk water operations and services operations. The retail water operations segment produces and supplies water to end users, including residential, commercial and government customers. The bulk water operations segment produces potable water from seawater and sells this water to governments and private customers. The services operations segment provides engineering and management services, including designing and constructing desalination plants, and managing and operating plants owned by affiliated companies. Through its subsidiaries and affiliates, it provides various services to its customers in the Cayman Islands, The Bahamas, Belize, the British Virgin Islands and Indonesia.

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