Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsSempra Energy (SRE)
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$32.94
-1.99%
UTILITIES · Cap: $118.61B
SRE
Sempra Energy
$92.64
-0.28%
UTILITIES · Cap: $60.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 178% more annual revenue ($38.09B vs $13.70B). SBS leads profitability with a 22.2% profit margin vs 13.4%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).
SBS
Strong Buy77
out of 100
Grade: B+
SRE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$32.94
$4.27 premium
Margin of Safety
-31.9%
Fair Value
$69.13
Current Price
$92.64
$23.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Strong operational efficiency at 34.6%
Revenue surging 43.9% year-over-year
Earnings expanding 87.2% YoY
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 27.7%
Areas to Watch
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 5.2% — below average capital efficiency
Weak financial health signals
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SRE
The strongest argument for SRE centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.83 suggests the stock is reasonably priced for its 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.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
SBS profiles as a growth stock while SRE is a declining play — different risk/reward profiles.
SRE carries more volatility with a beta of 0.68 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
SRE generates stronger free cash flow (-2.2B), providing more financial flexibility.
Bottom Line
SBS scores higher overall (77/100 vs 56/100), 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.
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.
Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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