WallStSmart

American States Water Company (AWR)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 5734% more annual revenue ($39.63B vs $679.25M). SBS leads profitability with a 22.0% profit margin vs 19.7%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).

AWR

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 4.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.23

SBS

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 8.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-11.2%)

Margin of Safety

-11.2%

Fair Value

$63.81

Current Price

$77.66

$13.85 premium

UndervaluedFair: $63.81Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 9.0/10
Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

SBS6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

AWR2 concerns · Avg: 2.0/10
PEG RatioValuation
2.802/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

SBS3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Price/Book. Profitability is solid with margins at 19.7% and operating margin at 30.9%. Revenue growth of 14.3% 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 : AWR

The primary concerns for AWR are PEG Ratio, Altman Z-Score.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

AWR profiles as a mature stock while SBS is a growth play — different risk/reward profiles.

AWR carries more volatility with a beta of 0.59 — 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 62/100), 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 States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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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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