WallStSmart

Pure Cycle Corporation (PCYO)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 121097% more annual revenue ($40.88B vs $33.73M). PCYO leads profitability with a 43.7% profit margin vs 19.7%. SBS trades at a lower P/E of 11.0x. SBS earns a higher WallStSmart Score of 69/100 (B-).

PCYO

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 5.3Quality: 7.5
Piotroski: 3/9Altman Z: 4.77

SBS

Strong Buy

69

out of 100

Grade: B-

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
43.7%10/10

Keeps 44 of every $100 in revenue as profit

Revenue GrowthGrowth
60.0%10/10

Revenue surging 60.0% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

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

Growing faster than its price suggests

P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

PCYO2 concerns · Avg: 3.0/10
Market CapQuality
$269.65M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : PCYO

The strongest argument for PCYO centers on Profit Margin, Revenue Growth, Debt/Equity. Profitability is solid with margins at 43.7% and operating margin at 25.7%. Revenue growth of 60.0% 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 : PCYO

The primary concerns for PCYO are Market Cap, Piotroski F-Score.

Bear Case : SBS

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

Key Dynamics to Monitor

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

PCYO carries more volatility with a beta of 1.23 — expect wider price swings.

PCYO is growing revenue faster at 60.0% — sustainability is the question.

PCYO generates stronger free cash flow (3M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (69/100 vs 65/100), backed by strong 19.7% margins and 13.9% revenue growth. Both earn "Strong 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.

Pure Cycle Corporation

UTILITIES · UTILITIES - REGULATED WATER · USA

Pure Cycle Corporation designs, builds, operates and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. The company is headquartered in Watkins, Colorado.

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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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