WallStSmart

Middlesex Water Company (MSEX)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 19729% more annual revenue ($40.88B vs $206.14M). MSEX leads profitability with a 23.3% profit margin vs 19.7%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 72/100 (B).

MSEX

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 7.0Value: 3.3Quality: 3.0
Piotroski: 1/9Altman Z: 0.81

SBS

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSEXSignificantly Overvalued (-20.9%)

Margin of Safety

-20.9%

Fair Value

$42.78

Current Price

$55.38

$12.60 premium

UndervaluedFair: $42.78Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSEX4 strengths · Avg: 8.8/10
Operating MarginProfitability
34.4%10/10

Strong operational efficiency at 34.4%

Profit MarginProfitability
23.3%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.6%8/10

Earnings expanding 31.6% YoY

SBS4 strengths · Avg: 9.5/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
18.452/10

Expensive relative to growth rate

Free Cash FlowQuality
$-4.24M2/10

Negative free cash flow — burning cash

SBS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-33.9%2/10

Earnings declined 33.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : MSEX

The strongest argument for MSEX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 23.3% and operating margin at 34.4%. Revenue growth of 14.3% demonstrates continued momentum.

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 19.7% and operating margin at 31.5%. Revenue growth of 13.9% demonstrates continued momentum.

Bear Case : MSEX

The primary concerns for MSEX are Market Cap, Piotroski F-Score, PEG Ratio.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

MSEX carries more volatility with a beta of 0.73 — expect wider price swings.

MSEX is growing revenue faster at 14.3% — sustainability is the question.

MSEX generates stronger free cash flow (-4M), providing more financial flexibility.

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

Bottom Line

SBS scores higher overall (72/100 vs 65/100), backed by strong 19.7% margins and 13.9% 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.

Middlesex Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

Middlesex Water Company owns and operates regulated water and wastewater utility systems. The company is headquartered in Iselin, New Jersey.

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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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