WallStSmart

California Water Service Group (CWT)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 3821% more annual revenue ($39.63B vs $1.01B). SBS leads profitability with a 22.0% profit margin vs 11.8%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).

CWT

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

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

CWTUndervalued (+21.3%)

Margin of Safety

+21.3%

Fair Value

$56.07

Current Price

$45.20

$10.87 discount

UndervaluedFair: $56.07Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

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

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-69.3%2/10

Earnings declined 69.3%

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 : CWT

The strongest argument for CWT centers on Price/Book.

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 : CWT

The primary concerns for CWT are PEG Ratio, Return on 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

CWT profiles as a value stock while SBS is a growth play — different risk/reward profiles.

CWT carries more volatility with a beta of 0.52 — 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 51/100), backed by strong 22.0% margins and 18.3% revenue growth. CWT offers better value entry with a 21.3% margin of safety. 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.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, 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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