Ambev SA ADR (ABEV)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
ABEV
Ambev SA ADR
$3.43
+1.78%
CONSUMER DEFENSIVE · Cap: $45.23B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$33.29
-1.01%
UTILITIES · Cap: $118.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Ambev SA ADR generates 132% more annual revenue ($88.24B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 17.6%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).
ABEV
Buy55
out of 100
Grade: C
SBS
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.5%
Fair Value
$11.95
Current Price
$3.43
$8.52 discount
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$33.29
$4.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Generating 11.6B in free cash flow
Attractively priced relative to earnings
Strong operational efficiency at 28.2%
Growing faster than its price suggests
Strong operational efficiency at 34.6%
Revenue surging 43.9% year-over-year
Earnings expanding 87.2% YoY
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Expensive relative to growth rate
Revenue declined 8.2%
Earnings declined 10.1%
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : ABEV
The strongest argument for ABEV centers on Free Cash Flow, P/E Ratio, Operating Margin. Profitability is solid with margins at 17.6% and operating margin at 28.2%.
Bull Case : SBS
The strongest argument for SBS centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 22.2% and operating margin at 34.6%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : ABEV
The primary concerns for ABEV are PEG Ratio, Revenue Growth, EPS Growth.
Bear Case : SBS
The primary concerns for SBS are Altman Z-Score, Piotroski F-Score, P/E Ratio. A P/E of 67.2x leaves little room for execution misses.
Key Dynamics to Monitor
ABEV profiles as a declining stock while SBS is a growth play — different risk/reward profiles.
ABEV carries more volatility with a beta of 0.23 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
ABEV generates stronger free cash flow (11.6B), providing more financial flexibility.
Bottom Line
SBS scores higher overall (77/100 vs 55/100), backed by strong 22.2% margins and 43.9% revenue growth. ABEV offers better value entry with a 74.5% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ambev SA ADR
CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA
Ambev SA produces, distributes and sells beer, draft beer, carbonated soft drinks (CSD), other non-alcoholic beverages, malt and food products in the Americas. The company is headquartered in So Paulo, Brazil.
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
UTILITIES · UTILITIES - REGULATED WATER · USA
Companhia de Saneamento Basico do Estado de So Paulo - SABESP provides water and sewerage services to residential, commercial, industrial and government clients. The company is headquartered in So Paulo, Brazil.
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