WallStSmart

Edison International (EIX)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 97% more annual revenue ($38.09B vs $19.32B). EIX leads profitability with a 23.1% profit margin vs 22.2%. SBS appears more attractively valued with a PEG of 0.47. EIX earns a higher WallStSmart Score of 85/100 (A).

EIX

Exceptional Buy

85

out of 100

Grade: A

Growth: 8.0Profit: 8.0Value: 6.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.68

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

EIXUndervalued (+15.6%)

Margin of Safety

+15.6%

Fair Value

$79.41

Current Price

$67.94

$11.47 discount

UndervaluedFair: $79.41Overvalued
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

EIX6 strengths · Avg: 9.7/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Revenue GrowthGrowth
30.8%10/10

Revenue surging 30.8% year-over-year

EPS GrowthGrowth
446.3%10/10

Earnings expanding 446.3% YoY

Return on EquityProfitability
24.1%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

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

EIX4 concerns · Avg: 1.8/10
PEG RatioValuation
3.212/10

Expensive relative to growth rate

Free Cash FlowQuality
$-319.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

Distress zone — elevated risk

Debt/EquityHealth
2.421/10

Elevated debt levels

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 : EIX

The strongest argument for EIX centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 23.1% and operating margin at 35.9%. Revenue growth of 30.8% demonstrates continued momentum.

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 : EIX

The primary concerns for EIX are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.42 is elevated, increasing financial risk.

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

EIX carries more volatility with a beta of 0.77 — expect wider price swings.

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

EIX generates stronger free cash flow (-319M), providing more financial flexibility.

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

Bottom Line

EIX scores higher overall (85/100 vs 77/100), backed by strong 23.1% margins and 30.8% revenue growth. Both earn "Exceptional 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.

Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

Visit Website →

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.

Want to dig deeper into these stocks?