WallStSmart

OPAL Fuels Inc (OPAL)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 10815% more annual revenue ($38.09B vs $348.98M). SBS leads profitability with a 22.2% profit margin vs 4.2%. OPAL trades at a lower P/E of 14.7x. SBS earns a higher WallStSmart Score of 77/100 (B+).

OPAL

Hold

38

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 7.7Quality: 3.0
Piotroski: 2/9Altman Z: 0.89

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

OPALUndervalued (+88.1%)

Margin of Safety

+88.1%

Fair Value

$19.86

Current Price

$2.16

$17.70 discount

UndervaluedFair: $19.86Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OPAL2 strengths · Avg: 8.0/10
P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
24.7%8/10

Revenue surging 24.7% year-over-year

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

OPAL4 concerns · Avg: 3.0/10
Market CapQuality
$66.79M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : OPAL

The strongest argument for OPAL centers on P/E Ratio, Revenue Growth. Revenue growth of 24.7% 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 : OPAL

The primary concerns for OPAL are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 47.27 is elevated, increasing financial risk. Thin 4.2% margins leave little buffer for downturns.

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

OPAL carries more volatility with a beta of 0.93 — expect wider price swings.

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

OPAL generates stronger free cash flow (-8M), providing more financial flexibility.

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

Bottom Line

SBS scores higher overall (77/100 vs 38/100), backed by strong 22.2% margins and 43.9% revenue growth. OPAL offers better value entry with a 88.1% margin of safety. Both earn "Strong 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.

OPAL Fuels Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

OPAL Fuels Inc. is a prominent player in the renewable natural gas industry, dedicated to converting organic waste into sustainable energy solutions that support the transition to a low-carbon economy. The company operates a diverse portfolio of RNG production facilities and has established strategic partnerships that enhance its competitive position within the market. With a strong focus on leveraging advanced technologies and innovative practices, OPAL Fuels is poised to capitalize on the rising demand for eco-friendly energy alternatives, demonstrating its commitment to generating substantial value in the dynamic energy sector.

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?