AWK and CWT: 2 Top-Tier Water Utilities Companies
Water consumption is totally uncorrelated to the underlying market conditions. Even during the deepest recession, people won''t limit their water consumption patterns. Two companies that can benefit from this are American Water Works Company (NYSE: AWK) California Water Service Group (NYSE: CWT). Being the highest-valued water utility in the United States, with a market cap of $27.7 billion, AWK offers an exceptional moat. Likewise, CWT is the dominant player in California, also distinguishing itself from its industry peers. The industry offers another advantageous characteristic. Due to it being highly regulated and capital intensive, there is essentially no competition for the existing players in the market. It''s a secured oligopoly.
AWK and CWT: 2 Top-Tier Water Utilities Companies
Water consumption is totally uncorrelated to the underlying market conditions. Even during the deepest recession, people won''t limit their water consumption patterns. Two companies that can benefit from this are American Water Works Company (NYSE: AWK) California Water Service Group (NYSE: CWT). Being the highest-valued water utility in the United States, with a market cap of $27.7 billion, AWK offers an exceptional moat. Likewise, CWT is the dominant player in California, also distinguishing itself from its industry peers. The industry offers another advantageous characteristic. Due to it being highly regulated and capital intensive, there is essentially no competition for the existing players in the market. It''s a secured oligopoly.