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 5760% more annual revenue ($40.88B vs $697.48M). AWR leads profitability with a 20.5% 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).

AWR

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.23

SBS

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-8.8%)

Margin of Safety

-8.8%

Fair Value

$65.19

Current Price

$84.44

$19.25 premium

UndervaluedFair: $65.19Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR4 strengths · Avg: 8.8/10
Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
25.8%8/10

Earnings expanding 25.8% YoY

SBS4 strengths · Avg: 9.5/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

AWR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-3.60M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

SBS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-33.9%2/10

Earnings declined 33.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% 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 19.7% and operating margin at 31.5%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Free Cash Flow, 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 carries more volatility with a beta of 0.55 — expect wider price swings.

SBS is growing revenue faster at 13.9% — sustainability is the question.

AWR generates stronger free cash flow (-4M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SBS scores higher overall (72/100 vs 68/100), backed by strong 19.7% margins and 13.9% revenue growth. Both earn "Strong Buy" and "Strong 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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