Veolia vs American Water Works: Which Utility Stock Offers Better Value?

Veolia Environnement SA (VEOEY) has a Zacks Rank of #2 (Buy) and a Value grade of A, while American Water Works (AWK) has a Zacks Rank of #4 (Sell) and a Value grade of D. VEOEY's forward P/E ratio is 13.48, PEG ratio is 1.57, and P/B ratio is 1.5. AWK's forward P/E ratio is 24.74 and P/B ratio is 2.58. Value investors may prefer VEOEY due to its strong Zacks Rank and impressive Value grade.

Veolia Environnement SA (VEOEY) and American Water Works Company, Inc. (AWK) are two prominent players in the water utilities sector, each with its unique financial performance and valuation metrics. This article provides a comparative analysis of the two companies based on their recent earnings reports and valuation metrics.

Veolia Environnement SA

Veolia Environnement SA reported earnings results for the half year ended June 30, 2025. The company reported sales of EUR 22,048 million, a slight decrease from EUR 22,141 million a year ago. Net income was EUR 657 million, up from EUR 651 million a year ago. The basic earnings per share from continuing operations was EUR 0.81, down from EUR 0.84 a year ago. The diluted earnings per share from continuing operations was also EUR 0.81, unchanged from a year ago [1].

American Water Works Company, Inc.

American Water Works Company, Inc. reported its second quarter 2025 earnings. The company reported revenue of US$1.28 billion, an 11% increase from the same period in 2024. Net income was US$289.0 million, a 4.3% increase from the previous year. The earnings per share (EPS) was US$1.48, up from US$1.42 in the second quarter of 2024. However, revenue exceeded analyst estimates by 3.9%, while EPS fell short by 2.6% [2].

Valuation Metrics

Veolia Environnement SA has a Zacks Rank of #2 (Buy) and a Value grade of A, indicating strong fundamentals and favorable valuation. The company's forward P/E ratio is 13.48, PEG ratio is 1.57, and P/B ratio is 1.5. In contrast, American Water Works Company, Inc. has a Zacks Rank of #4 (Sell) and a Value grade of D, suggesting a less favorable valuation. AWK's forward P/E ratio is 24.74, and P/B ratio is 2.58 [3].

Conclusion

Value investors may prefer Veolia Environnement SA due to its strong Zacks Rank and impressive Value grade. However, American Water Works Company, Inc. has shown robust revenue growth and a positive net income increase, albeit with a less favorable valuation. Investors should consider these factors alongside their risk tolerance and investment objectives when making decisions.

References

[1] https://www.marketscreener.com/news/veolia-environnement-sa-reports-earnings-results-for-the-half-year-ended-june-30-2025-ce7c5fdcd089f522
[2] https://www.marketscreener.com/news/earnings-flash-awk-american-water-works-q2-eps-1-48-vs-factset-est-1-52-ce7c5fdcd981f526
[3] https://simplywall.st/stocks/us/utilities/nyse-awk/american-water-works/news/american-water-works-company-second-quarter-2025-earnings-re