WallStSmart

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsVerde Clean Fuels Inc. (VGAS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SBS leads profitability with a 22.2% profit margin vs 0.0%. SBS earns a higher WallStSmart Score of 77/100 (B+).

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81

VGAS

Avoid

23

out of 100

Grade: F

Growth: 4.3Profit: 3.0Value: 5.0Quality: 7.0
Piotroski: 1/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued

Intrinsic value data unavailable for VGAS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

VGAS2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Areas to Watch

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

VGAS4 concerns · Avg: 3.8/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Market CapQuality
$85.09M3/10

Smaller company, higher risk/reward

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : VGAS

The strongest argument for VGAS centers on Price/Book, Debt/Equity.

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 : VGAS

The primary concerns for VGAS are Revenue Growth, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

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

SBS carries more volatility with a beta of 0.20 — expect wider price swings.

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

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

Bottom Line

SBS scores higher overall (77/100 vs 23/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Strong Buy" and "Avoid" 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.

Verde Clean Fuels Inc.

UTILITIES · UTILITIES - RENEWABLE · USA

Verde Clean Fuels, Inc. focuses on suppling gasoline and other fuels derived from renewable feedstocks or natural gas. The company is headquartered in Hillsborough, New Jersey.

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