WallStSmart

RGC Resources Inc (RGCO)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 38649% more annual revenue ($38.09B vs $98.31M). SBS leads profitability with a 22.2% profit margin vs 13.1%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

RGCO

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.90

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

RGCOUndervalued (+15.4%)

Margin of Safety

+15.4%

Fair Value

$25.63

Current Price

$22.73

$2.90 discount

UndervaluedFair: $25.63Overvalued
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

RGCO3 strengths · Avg: 8.0/10
P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

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

RGCO4 concerns · Avg: 2.5/10
Market CapQuality
$229.51M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.343/10

Elevated debt levels

EPS GrowthGrowth
-7.8%2/10

Earnings declined 7.8%

Free Cash FlowQuality
$-4.56M2/10

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
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 : RGCO

The strongest argument for RGCO centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 10.9% demonstrates continued momentum. PEG of 1.30 suggests the stock is reasonably priced for its growth.

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 : RGCO

The primary concerns for RGCO are Market Cap, Debt/Equity, EPS Growth.

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

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

RGCO carries more volatility with a beta of 0.51 — expect wider price swings.

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

RGCO generates stronger free cash flow (-5M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 57/100), backed by strong 22.2% margins and 43.9% revenue growth. RGCO offers better value entry with a 15.4% margin of safety. 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.

RGC Resources Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

RGC Resources, Inc. is an energy services company. The company is headquartered in Roanoke, Virginia.

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?