WallStSmart

Brookfield Renewable Corp (BEPC)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 922% more annual revenue ($38.09B vs $3.73B). SBS leads profitability with a 22.2% profit margin vs -62.9%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

BEPC

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 4.0Value: 6.3Quality: 4.5
Piotroski: 5/9

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

BEPCUndervalued (+37.7%)

Margin of Safety

+37.7%

Fair Value

$69.43

Current Price

$35.20

$34.23 discount

UndervaluedFair: $69.43Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BEPC1 strengths · Avg: 8.0/10
Operating MarginProfitability
21.1%8/10

Strong operational efficiency at 21.1%

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

BEPC4 concerns · Avg: 2.5/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Return on EquityProfitability
-22.0%2/10

ROE of -22.0% — below average capital efficiency

Revenue GrowthGrowth
-5.0%2/10

Revenue declined 5.0%

EPS GrowthGrowth
-98.9%2/10

Earnings declined 98.9%

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 : BEPC

The strongest argument for BEPC centers on Operating Margin.

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 : BEPC

The primary concerns for BEPC are PEG Ratio, Return on Equity, Revenue Growth.

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

BEPC profiles as a turnaround stock while SBS is a growth play — different risk/reward profiles.

BEPC carries more volatility with a beta of 1.23 — expect wider price swings.

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

BEPC generates stronger free cash flow (-351M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 42/100), backed by strong 22.2% margins and 43.9% revenue growth. BEPC offers better value entry with a 37.7% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brookfield Renewable Corp

UTILITIES · UTILITIES - RENEWABLE · USA

Brookfield Renewable Corporation owns and operates a portfolio of renewable energy power generation facilities primarily in North America, Europe, Colombia, and Brazil. The company is headquartered in New York, New York.

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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