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 129226% more annual revenue ($39.63B vs $30.64M). PCYO leads profitability with a 45.8% profit margin vs 22.0%. SBS trades at a lower P/E of 11.2x. SBS earns a higher WallStSmart Score of 79/100 (B+).

PCYO

Buy

55

out of 100

Grade: C

Growth: 7.3Profit: 7.0Value: 5.3Quality: 7.0
Piotroski: 3/9Altman Z: 4.77

SBS

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.43

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PCYO6 strengths · Avg: 9.3/10
Profit MarginProfitability
45.8%10/10

Keeps 46 of every $100 in revenue as profit

EPS GrowthGrowth
52.8%10/10

Earnings expanding 52.8% YoY

Debt/EquityHealth
0.0510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7710/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.4%8/10

Revenue surging 29.4% year-over-year

SBS6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

PCYO3 concerns · Avg: 2.7/10
Market CapQuality
$255.74M3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.51M2/10

Negative free cash flow — burning cash

SBS3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.432/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : PCYO

The strongest argument for PCYO centers on Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 45.8% and operating margin at 5.1%. Revenue growth of 29.4% 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 22.0% and operating margin at 33.9%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : PCYO

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

Bear Case : SBS

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

Key Dynamics to Monitor

PCYO carries more volatility with a beta of 1.24 — expect wider price swings.

PCYO is growing revenue faster at 29.4% — sustainability is the question.

SBS generates stronger free cash flow (722M), providing more financial flexibility.

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

Bottom Line

SBS scores higher overall (79/100 vs 55/100), backed by strong 22.0% margins and 18.3% 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.

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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