WallStSmart

Pinnacle West Capital Corp (PNW)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 598% more annual revenue ($38.09B vs $5.46B). SBS leads profitability with a 22.2% profit margin vs 12.0%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

PNW

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 4.0Quality: 2.8
Piotroski: 1/9Altman Z: 0.71

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

PNWFair Value (-2.9%)

Margin of Safety

-2.9%

Fair Value

$93.31

Current Price

$99.25

$5.94 premium

UndervaluedFair: $93.31Overvalued
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

PNW1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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

PNW4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.6%4/10

0.6% earnings growth

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

Free Cash FlowQuality
$-393.06M2/10

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 : PNW

The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% 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 : PNW

The primary concerns for PNW are EPS Growth, 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

PNW profiles as a value stock while SBS is a growth play — different risk/reward profiles.

PNW carries more volatility with a beta of 0.46 — expect wider price swings.

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

PNW generates stronger free cash flow (-393M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 55/100), 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.

Pinnacle West Capital Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.

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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