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 19031% more annual revenue ($38.09B vs $199.11M). SBS leads profitability with a 22.2% profit margin vs 22.1%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

MSEX

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 4.0Quality: 3.0
Piotroski: 1/9Altman Z: 0.81

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

MSEXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$45.83

Current Price

$51.56

$5.73 premium

UndervaluedFair: $45.83Overvalued
SBSFair Value (-1.0%)

Margin of Safety

-1.0%

Fair Value

$29.29

Current Price

$6.35

$22.94 premium

UndervaluedFair: $29.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MSEX3 strengths · Avg: 8.3/10
Profit MarginProfitability
22.1%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

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

Market CapQuality
$116.87B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

MSEX4 concerns · Avg: 2.5/10
Market CapQuality
$948.54M3/10

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
$-8.91M2/10

Negative free cash flow — burning cash

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
331.6x2/10

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 : MSEX

The strongest argument for MSEX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 22.1% and operating margin at 29.3%.

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, P/E Ratio. A P/E of 331.6x leaves little room for execution misses.

Key Dynamics to Monitor

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

MSEX carries more volatility with a beta of 0.78 — expect wider price swings.

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

MSEX generates stronger free cash flow (-9M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 59/100), 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.

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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