WallStSmart

EastGroup Properties Inc (EGP)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 5080% more annual revenue ($38.09B vs $735.38M). EGP leads profitability with a 39.8% profit margin vs 22.2%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

EGP

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 4.0Quality: 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

EGPUndervalued (+2.3%)

Margin of Safety

+2.3%

Fair Value

$194.31

Current Price

$203.00

$8.69 discount

UndervaluedFair: $194.31Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.29

$4.62 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EGP3 strengths · Avg: 10.0/10
Profit MarginProfitability
39.8%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
40.2%10/10

Strong operational efficiency at 40.2%

EPS GrowthGrowth
55.3%10/10

Earnings expanding 55.3% YoY

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

EGP2 concerns · Avg: 3.0/10
P/E RatioValuation
36.1x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
8.422/10

Expensive relative to growth rate

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 : EGP

The strongest argument for EGP centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.8% and operating margin at 40.2%.

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 : EGP

The primary concerns for EGP are P/E Ratio, 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

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

EGP carries more volatility with a beta of 1.07 — expect wider price swings.

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

EGP generates stronger free cash flow (127M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 61/100), 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.

EastGroup Properties Inc

REAL ESTATE · REIT - INDUSTRIAL · USA

EastGroup Properties, Inc. (NYSE: EGP), an S&P MidCap 400 company, is a self-managed capital real estate investment trust focused on the development, acquisition and operation of industrial properties in Sunbelt's major markets in the United States. with an emphasis on the states of Florida, Texas, Arizona, California and North Carolina.

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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