WallStSmart

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 1452% more annual revenue ($39.63B vs $2.55B). SBS leads profitability with a 22.0% profit margin vs 21.8%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).

SBS

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 8.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.54

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for SBS.

WTRGUndervalued (+45.6%)

Margin of Safety

+45.6%

Fair Value

$68.87

Current Price

$37.27

$31.60 discount

UndervaluedFair: $68.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SBS6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
36.1%10/10

Strong operational efficiency at 36.1%

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Areas to Watch

SBS3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WTRG4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.223/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.592/10

Expensive relative to growth rate

EPS GrowthGrowth
-23.3%2/10

Earnings declined 23.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 22.0% and operating margin at 33.9%. Revenue growth of 18.3% demonstrates continued momentum.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.8% and operating margin at 36.1%.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Bear Case : WTRG

The primary concerns for WTRG are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

SBS profiles as a growth stock while WTRG is a mature play — different risk/reward profiles.

WTRG carries more volatility with a beta of 0.65 — expect wider price swings.

SBS is growing revenue faster at 18.3% — sustainability is the question.

SBS generates stronger free cash flow (722M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (79/100 vs 60/100), backed by strong 22.0% margins and 18.3% revenue growth. WTRG offers better value entry with a 45.6% 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.

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.

Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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