WallStSmart

Middlesex Water Company (MSEX)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 19465% more annual revenue ($38.09B vs $194.69M). SBS leads profitability with a 22.2% profit margin vs 22.0%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 87/100 (A).

MSEX

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 7.0Value: 4.7Quality: 4.0
Piotroski: 1/9Altman Z: 0.81

SBS

Exceptional Buy

87

out of 100

Grade: A

Growth: 9.3Profit: 8.5Value: 10.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MSEXSignificantly Overvalued (-222.2%)

Margin of Safety

-222.2%

Fair Value

$16.05

Current Price

$51.11

$35.06 premium

UndervaluedFair: $16.05Overvalued
SBSUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$109.04

Current Price

$29.86

$79.18 discount

UndervaluedFair: $109.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSEX3 strengths · Avg: 8.3/10
Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

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

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$943.14M3/10

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

Revenue GrowthGrowth
-0.3%2/10

Revenue declined 0.3%

SBS2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : MSEX

The strongest argument for MSEX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 22.0% and operating margin at 26.3%.

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 : 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, Piotroski F-Score.

Key Dynamics to Monitor

MSEX profiles as a declining stock while SBS is a growth play — different risk/reward profiles.

MSEX carries more volatility with a beta of 0.86 — expect wider price swings.

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

SBS generates stronger free cash flow (620M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (87/100 vs 49/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Exceptional 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.

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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