WallStSmart

AXIA Energia SA Sponsored ADR Pfd Class B (AXIA-P)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AXIA Energia SA Sponsored ADR Pfd Class B generates 8% more annual revenue ($41.28B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 15.9%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

AXIA-P

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 4.3Quality: 5.0

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AXIA-P.

SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$32.94

$4.27 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXIA-P4 strengths · Avg: 9.0/10
Operating MarginProfitability
60.9%10/10

Strong operational efficiency at 60.9%

EPS GrowthGrowth
1141.0%10/10

Earnings expanding 1141.0% YoY

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.26B8/10

Generating 2.3B in free cash flow

SBS6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
87.2%10/10

Earnings expanding 87.2% YoY

Market CapQuality
$118.61B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

AXIA-P4 concerns · Avg: 2.8/10
P/E RatioValuation
29.8x4/10

Moderate valuation

Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

PEG RatioValuation
4.592/10

Expensive relative to growth rate

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

SBS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.2x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-8.22B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AXIA-P

The strongest argument for AXIA-P centers on Operating Margin, EPS Growth, Price/Book. Profitability is solid with margins at 15.9% and operating margin at 60.9%.

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 : AXIA-P

The primary concerns for AXIA-P are P/E Ratio, Return on Equity, PEG Ratio.

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

AXIA-P profiles as a declining stock while SBS is a growth play — different risk/reward profiles.

AXIA-P carries more volatility with a beta of 0.33 — expect wider price swings.

SBS is growing revenue faster at 43.9% — sustainability is the question.

AXIA-P generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 64/100), backed by strong 22.2% margins and 43.9% 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.

AXIA Energia SA Sponsored ADR Pfd Class B

UTILITIES · UTILITIES - RENEWABLE · USA

Centrais Eltricas Brasileiras S.A. - Eletrobrs, engages in the generation, transmission, and commercialization of electricity in Brazil. The company is headquartered in Rio de Janeiro, 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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