Head to Head Survey: Pure Cycle (NASDAQ:PCYO) vs. Artesian Resources (NASDAQ:ARTNA)

by · The Cerbat Gem

Artesian Resources (NASDAQ:ARTNA – Get Free Report) and Pure Cycle (NASDAQ:PCYO – Get Free Report) are both small-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
Artesian Resources20.18%9.37%2.75%
Pure Cycle43.66%9.98%8.75%

Insider & Institutional Ownership

57.4% of Artesian Resources shares are owned by institutional investors. Comparatively, 51.4% of Pure Cycle shares are owned by institutional investors. 20.6% of Artesian Resources shares are owned by insiders. Comparatively, 6.1% of Pure Cycle shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Artesian Resources has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, Pure Cycle has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Earnings & Valuation

This table compares Artesian Resources and Pure Cycle”s gross revenue, earnings per share and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Artesian Resources$112.94 million3.08$22.82 million$2.2914.71
Pure Cycle$26.09 million9.71$13.11 million$0.6117.23

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

Analyst Recommendations

This is a breakdown of recent recommendations for Artesian Resources and Pure Cycle, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Artesian Resources02002.00
Pure Cycle01002.00

Summary

Pure Cycle beats Artesian Resources on 6 of the 11 factors compared between the two stocks.

About Artesian Resources

(Get Free Report)

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, 2023, it served approximately 95,900 customers in Delaware; 2,600 customers in Maryland; and 40 customers in Pennsylvania through 1,470 miles of transmission and distribution mains. Artesian Resources Corporation was founded in 1905 and is headquartered in Newark, Delaware.

About Pure Cycle

(Get Free Report)

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. It operates in two segments, Wholesale Water and Wastewater Services, and Land Development. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of 930-acre master-planned community; oil and gas leasing business; and construction and leasing of single-family homes. It serves domestic, commercial, and industrial customers in the Eastern Denver metropolitan region. Pure Cycle Corporation was incorporated in 1976 and is based in Watkins, Colorado.