American Water Works (AWK)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
AWK
American Water Works
$139.79
-0.93%
UTILITIES · Cap: $26.82B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$4.67
-1.89%
UTILITIES · Cap: $16.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 674% more annual revenue ($40.88B vs $5.28B). AWK leads profitability with a 21.3% profit margin vs 19.7%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 72/100 (B).
AWK
Buy64
out of 100
Grade: C+
SBS
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.1%
Fair Value
$101.28
Current Price
$139.79
$38.51 premium
Intrinsic value data unavailable for SBS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 31.5%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Earnings declined 33.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 40.7%.
Bull Case : SBS
The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 19.7% and operating margin at 31.5%. Revenue growth of 13.9% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : SBS
The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AWK carries more volatility with a beta of 0.57 — expect wider price swings.
SBS is growing revenue faster at 13.9% — sustainability is the question.
AWK generates stronger free cash flow (-258M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SBS scores higher overall (72/100 vs 64/100), backed by strong 19.7% margins and 13.9% 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 Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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