American Electric Power Co Inc (AEP)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
AEP
American Electric Power Co Inc
$127.79
+0.58%
UTILITIES · Cap: $69.16B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$5.35
-0.18%
UTILITIES · Cap: $19.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 77% more annual revenue ($39.63B vs $22.43B). SBS leads profitability with a 22.0% profit margin vs 16.3%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).
AEP
Buy64
out of 100
Grade: C+
SBS
Strong Buy79
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 23.7%
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 33.9%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
18.3% revenue growth
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : SBS
The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 22.0% and operating margin at 33.9%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : SBS
The primary concerns for SBS are Debt/Equity, Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while SBS is a growth play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
SBS is growing revenue faster at 18.3% — sustainability is the question.
SBS generates stronger free cash flow (722M), providing more financial flexibility.
Bottom Line
SBS scores higher overall (79/100 vs 64/100), backed by strong 22.0% margins and 18.3% revenue growth. 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.
American Electric Power Co Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.
Visit Website →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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