AWK vs. WM

Last updated Jul 11, 2026

AWK (American Water Works Company, Inc.) and WM (Waste Management, Inc.) are both stocks. AWK operates in Utilities - Regulated Water (Utilities), while WM operates in Waste Management (Industrials). Over the past 10 years, AWK returned 6.94%/yr vs 15.27%/yr for WM. At a 0.41 correlation, their price movements are largely independent.

Performance

AWK vs. WM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Water Works Company, Inc. (AWK) and Waste Management, Inc. (WM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AWK achieves a 1.55% return, which is significantly lower than WM's 7.08% return. Over the past 10 years, AWK has underperformed WM with an annualized return of 6.94%, while WM has yielded a comparatively higher 15.27% annualized return.

AWK

• 1D: 0.11%
• 1M: 3.47%
• 6M: 3.54%
• YTD: 1.55%
• 1Y: -5.73%
• 3Y*: -0.51%
• 5Y*: -2.21%
• 10Y*: 6.94%

WM

• 1D: 0.72%
• 1M: 6.32%
• 6M: 6.50%
• YTD: 7.08%
• 1Y: 4.89%
• 3Y*: 12.80%
• 5Y*: 12.02%
• 10Y*: 15.27%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AWK vs. WM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AWK American Water Works Company, Inc.	1.55%	7.40%	-3.53%	-11.68%	-17.89%	24.83%	26.88%	37.79%	1.32%	29.01%
WM Waste Management, Inc.	7.08%	10.50%	14.28%	16.20%	-4.49%	43.82%	5.46%	30.45%	5.32%	24.46%

Correlation

The correlation between AWK and WM is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Apr 23, 2008	0.42

Fundamentals

Market Cap AWK : $25.52B WM : $93.70B
EPS AWK : $5.65 WM : $6.91
PE Ratio AWK : 23.13 WM : 33.77
PS Ratio AWK : 4.90 WM : 3.71
PB Ratio AWK : 2.31 WM : 9.42
Total Revenue (TTM) AWK : $5.21B WM : $25.41B
Gross Profit (TTM) AWK : $2.27B WM : $5.61B
EBITDA (TTM) AWK : $2.48B WM : $6.96B

Return for Risk

AWK vs. WM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AWK

AWK Risk / Return Rank: 31
AWK Sharpe Ratio Rank: 33
AWK Sortino Ratio Rank: 28
AWK Omega Ratio Rank: 29
AWK Calmar Ratio Rank: 32
AWK Martin Ratio Rank: 32

WM

WM Risk / Return Rank: 51
WM Sharpe Ratio Rank: 55
WM Sortino Ratio Rank: 46
WM Omega Ratio Rank: 46
WM Calmar Ratio Rank: 53
WM Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AWK vs. WM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Water Works Company, Inc. (AWK) and Waste Management, Inc. (WM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AWK	WM	Difference
Sharpe ratio: Return per unit of total volatility	-0.27	0.26	-0.53
Sortino ratio: Return per unit of downside risk	-0.24	0.50	-0.74
Omega ratio: Gain probability vs. loss probability	0.97	1.06	-0.09
Calmar ratio: Return relative to maximum drawdown	-0.39	0.30	-0.69
Martin ratio: Return relative to average drawdown	-0.69	0.65	-1.34

AWK vs. WM - Sharpe Ratio Comparison

The current AWK Sharpe Ratio is -0.27, which is lower than the WM Sharpe Ratio of 0.26. The chart below compares the historical Sharpe Ratios of AWK and WM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AWK vs. WM - Drawdown Comparison

The maximum AWK drawdown since its inception was -37.10%, smaller than the maximum WM drawdown of -77.85%. Use the drawdown chart below to compare losses from any high point for AWK and WM.

Drawdown Indicators

	AWK	WM	Difference
Max Drawdown Largest peak-to-trough decline	-37.10%	-77.85%	+40.75%
Max Drawdown (1Y) Largest decline over 1 year	-15.45%	-16.70%	+1.25%
Max Drawdown (3Y) Largest decline over 3 years	-22.24%	-18.14%	-4.10%
Max Drawdown (5Y) Largest decline over 5 years	-37.10%	-18.14%	-18.96%
Max Drawdown (10Y) Largest decline over 10 years	-37.10%	-30.07%	-7.03%
Current Drawdown Current decline from peak	-23.70%	-4.56%	-19.14%
Average Drawdown Average peak-to-trough decline	-9.57%	-17.67%	+8.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.73%	7.82%	+0.91%

Volatility

AWK vs. WM - Volatility Comparison

American Water Works Company, Inc. (AWK) has a higher volatility of 7.53% compared to Waste Management, Inc. (WM) at 7.09%. This indicates that AWK's price experiences larger fluctuations and is considered to be riskier than WM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AWK	WM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.53%	7.09%	+0.44%
Volatility (6M) Calculated over the trailing 6-month period	16.50%	14.99%	+1.51%
Volatility (1Y) Calculated over the trailing 1-year period	22.27%	19.59%	+2.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.96%	18.79%	+4.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.78%	19.62%	+4.16%

Dividends

AWK vs. WM - Dividend Comparison

AWK's dividend yield for the trailing twelve months is around 2.58%, more than WM's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AWK American Water Works Company, Inc.	2.58%	2.49%	2.41%	2.10%	1.68%	1.25%	1.40%	1.59%	1.96%	1.77%	2.02%	2.23%
WM Waste Management, Inc.	1.52%	1.50%	1.49%	1.56%	1.66%	1.38%	1.85%	1.80%	2.09%	1.97%	2.31%	2.89%

Financials

AWK vs. WM - Profitability Comparison

The chart below illustrates the profitability comparison between American Water Works Company, Inc. and Waste Management, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AWK - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, American Water Works Company, Inc. reported a gross profit of 714.00M and revenue of 1.21B. Therefore, the gross margin over that period was 59.2%.

WM - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Waste Management, Inc. reported a gross profit of 0.00 and revenue of 6.23B. Therefore, the gross margin over that period was 0.0%.

AWK - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, American Water Works Company, Inc. reported an operating income of 391.00M and revenue of 1.21B, resulting in an operating margin of 32.4%.

WM - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Waste Management, Inc. reported an operating income of 1.11B and revenue of 6.23B, resulting in an operating margin of 17.9%.

AWK - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, American Water Works Company, Inc. reported a net income of 196.00M and revenue of 1.21B, resulting in a net margin of 16.2%.

WM - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Waste Management, Inc. reported a net income of 723.00M and revenue of 6.23B, resulting in a net margin of 11.6%.

Frequently Asked Questions

Can I hold both AWK and WM in my portfolio?

AWK and WM have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AWK or WM?

AWK has higher volatility (7.53%) compared to WM (7.09%). In terms of maximum drawdown, AWK dropped -37.10% vs WM's -77.85%.

Which has better risk-adjusted returns?

WM currently has the higher Sharpe Ratio (0.26 vs -0.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.