Artesian Resources (NASDAQ: ARTNA) and Cadiz (NASDAQ:CDZI) are both small-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Profitability

This table compares Artesian Resources and Cadiz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Artesian Resources 15.96% 9.18% 2.80%
Cadiz -7,848.01% N/A -49.62%

Analyst Ratings

This is a summary of recent ratings for Artesian Resources and Cadiz, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Artesian Resources 0 1 0 0 2.00
Cadiz 0 0 1 0 3.00

Artesian Resources presently has a consensus price target of $41.00, suggesting a potential upside of 16.98%. Cadiz has a consensus price target of $18.00, suggesting a potential upside of 28.11%. Given Cadiz’s stronger consensus rating and higher possible upside, analysts clearly believe Cadiz is more favorable than Artesian Resources.

Volatility and Risk

Artesian Resources has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500. Comparatively, Cadiz has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Valuation & Earnings

This table compares Artesian Resources and Cadiz’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Artesian Resources $79.09 million 4.07 $12.95 million $1.41 24.86
Cadiz $410,000.00 781.32 -$26.33 million ($2.05) -6.85

Artesian Resources has higher revenue and earnings than Cadiz. Cadiz is trading at a lower price-to-earnings ratio than Artesian Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.2% of Artesian Resources shares are owned by institutional investors. Comparatively, 49.8% of Cadiz shares are owned by institutional investors. 20.6% of Artesian Resources shares are owned by insiders. Comparatively, 5.6% of Cadiz shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Artesian Resources pays an annual dividend of $0.94 per share and has a dividend yield of 2.7%. Cadiz does not pay a dividend. Artesian Resources pays out 66.7% of its earnings in the form of a dividend.

Summary

Artesian Resources beats Cadiz on 9 of the 16 factors compared between the two stocks.

Artesian Resources Company Profile

Artesian Resources Corporation is a holding company. The Company’s subsidiaries offer water, wastewater and other services on the Delmarva Peninsula. The Company distributes and sells water, including water for public and private fire protection, to residential, commercial, industrial, municipal and utility customers in the states of Delaware, Maryland and Pennsylvania. The Company also provides wastewater services to customers in Delaware. In addition, the Company provides contract water and wastewater operations, and water, sewer and internal Service Line Protection Plans. As of December 31, 2016, the Company was the holding company of five regulated public utilities: Artesian Water Company, Inc., Artesian Water Pennsylvania, Inc., Artesian Water Maryland, Inc., Artesian Wastewater Management, Inc. and Artesian Wastewater Maryland, Inc., and three non-regulated subsidiaries: Artesian Utility Development, Inc., Artesian Development Corporation and Artesian Consulting Engineers, Inc.

Cadiz Company Profile

Cadiz Inc. is a land and water resource development company. As of December 31, 2016, the Company had 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company’s primary business is to acquire and develop land with water resources for various uses, including groundwater supply, groundwater storage and agriculture. As of December 31, 2016, the Company was focused on the development of the Cadiz Valley Water Conservation, Recovery and Storage Project (Water Project or Project), which captures and conserves native groundwater being lost to evaporation from the aquifer system beneath its 34,000-acre property in the Cadiz and Fenner valleys of eastern San Bernardino County (the Cadiz/Fenner Property), and delivers it to water providers throughout Southern California. Its development activities include water resource and agricultural development at its San Bernardino County properties.

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