American Water Works Company, I
Stocks
CrowdStrike Holdings, Inc.
Stocks
American Water Works Company, Inc. vs CrowdStrike Holdings, Inc.: A Industry and Use-Case Comparison
Last updated: June 2, 2026
Summary
American Water Works Company, Inc. offers a stable, dividend-yielding investment with a focus on utility services, while CrowdStrike Holdings, Inc. provides high-growth potential in cybersecurity despite negative profit margins. This comparison highlights their distinct use cases for investors seeking stability versus growth in different sectors.
Key Differences at a Glance
| Aspect | American Water Works Company, I | CrowdStrike Holdings, Inc. | Winner |
|---|---|---|---|
| Market Capitalization | $23.65 billion | $199.09 billion | CrowdStrike Holdings, Inc. |
| Profit Margin | 21.17% | -3.38% | American Water Works Company, I |
| PE Ratio | 21.44 | N/A (negative EPS) | American Water Works Company, I |
| Dividend Yield | 2.9% | N/A | American Water Works Company, I |
| Beta (Market Volatility) | 0.634 | 1.06 | American Water Works Company, I |
Market Capitalization: CrowdStrike's market cap is nearly 8.4 times larger, reflecting its aggressive growth focus and dominance in the cybersecurity sector, which is crucial for investors eyeing high potential technology stocks.
Profit Margin: American Water Works demonstrates stable profitability with a profit margin of 21.17%, whereas CrowdStrike is currently unprofitable with a negative profit margin, indicating different business models—utilities versus high-growth tech.
PE Ratio: American Water Works has a positive PE ratio of 21.44, signaling established profitability. CrowdStrike's PE ratio is not applicable due to its negative earnings, typical for high-growth tech firms still in expansion phases.
Dividend Yield: With a dividend yield of 2.9%, American Water Works provides income-focused returns, unlike CrowdStrike which reinvests earnings into growth, offering no dividends.
Beta (Market Volatility): American Water's lower beta indicates less volatility relative to the market, appealing to conservative investors. CrowdStrike's higher beta suggests higher risk and potential reward, suitable for risk-tolerant investors.
Detailed Analysis
American Water Works Company, Inc. operates within the Utilities sector, specifically in regulated water services, which is traditionally seen as a defensive investment. Its revenue of approximately $5.21 billion and a market cap of $23.65 billion reflect a stable, cash-generating business. The company's EPS of 5.65 and profit margin of 21.17% demonstrate consistent profitability, supported by a dividend yield of 2.9%, making it attractive for income investors seeking reliable returns with less volatility, as indicated by its beta of 0.634. Its forward PE ratio of approximately 18.47 suggests it is reasonably valued relative to earnings, especially for investors prioritizing income and stability in their portfolio.
In contrast, CrowdStrike Holdings operates in the rapidly evolving cybersecurity industry, with a revenue of nearly $4.81 billion and a market cap of around $199.09 billion. Despite its massive valuation, the company currently shows a negative EPS of -0.66 and a profit margin of -3.38%, reflecting its high-growth, reinvestment-driven business model. Its forward PE ratio is extremely high at around 126.75, indicative of expectations for future earnings growth. The company's beta of 1.06 signifies higher volatility, aligning with the tech sector’s typical risk profile. Notably, CrowdStrike offers no dividend, emphasizing its focus on growth and innovation.
From a use-case perspective, American Water Works is an ideal choice for conservative investors prioritizing stability, income, and low volatility, especially during economic downturns. Its consistent earnings, dividend payments, and low beta make it suitable for risk-averse portfolios. Conversely, CrowdStrike appeals to growth-oriented investors interested in technology and cybersecurity sectors that are forecasted to expand rapidly. Despite current losses, its substantial revenue growth, high market cap, and industry position suggest significant upside potential, attracting those prepared for higher risk and volatility for the promise of future earnings.
In summary, the choice between these two stocks hinges on investor goals: whether stability and income favor American Water Works or aggressive growth and sector innovation favor CrowdStrike.
Verdict
American Water Works Company, Inc. is the clear winner for conservative investors seeking stability, reliable dividends, and lower market volatility. CrowdStrike Holdings, Inc. suits growth-focused investors willing to accept short-term losses for exposure to a high-growth, innovative cybersecurity market. The key distinction lies in their business models and risk profiles—utility versus technology—making each optimal for different investment strategies.
Who Should Choose What
Choose American Water Works Company, I if...
Best for income-focused investors, those seeking stability in utility stocks, and risk-averse portfolios.
Choose CrowdStrike Holdings, Inc. if...
Best for aggressive growth investors, technology sector enthusiasts, and those comfortable with higher volatility and no dividend income.
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