Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsSouthwest Gas Holdings Inc (SWX)
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$33.63
+2.09%
UTILITIES · Cap: $118.61B
SWX
Southwest Gas Holdings Inc
$91.90
+0.21%
UTILITIES · Cap: $6.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 1863% more annual revenue ($38.09B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 22.2%. 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+
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$33.63
$4.96 premium
Margin of Safety
-18.3%
Fair Value
$72.67
Current Price
$91.90
$19.23 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
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
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 : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
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 : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
SBS profiles as a growth stock while SWX is a declining play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.59 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
SWX generates stronger free cash flow (-503M), 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. 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.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
Compare with Other UTILITIES - REGULATED WATER Stocks
Want to dig deeper into these stocks?