Better Buy: Aqua America, Inc. vs. Connecticut Water Service

Water stocks offer income investors respectable dividends and steady growth. That's because most water utilities operate within regulated markets, where investments in water distribution infrastructure are rewarded with higher rates over time. While they achieve relatively slow rates of growth, they do so with relatively low risks -- and investors usually end up paying a premium for it.

Individual investors essentially have two options in the industry. You can own large, national companies such as Aqua America (NYSE: WTR), or you can own small, regional companies such as Connecticut Water Service (NASDAQ: CTWS). If you had to choose only one, then which would be the better buy and why?

Image source: Getty Images.

Source: Fool.com