WallStSmart

Algonquin Power & Utilities Corp (AQN)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 1465% more annual revenue ($38.09B vs $2.43B). SBS leads profitability with a 22.2% profit margin vs 7.4%. AQN trades at a lower P/E of 22.8x. SBS earns a higher WallStSmart Score of 77/100 (B+).

AQN

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 5.0Value: 7.0Quality: 4.0
Piotroski: 5/9Altman Z: 0.32

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

AQNUndervalued (+71.3%)

Margin of Safety

+71.3%

Fair Value

$22.99

Current Price

$6.16

$16.83 discount

UndervaluedFair: $22.99Overvalued
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

AQN1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

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

AQN4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

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 : AQN

The strongest argument for AQN centers on Price/Book.

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 : AQN

The primary concerns for AQN are Revenue Growth, Return on Equity, Profit Margin.

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

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

AQN carries more volatility with a beta of 0.89 — expect wider price swings.

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

AQN generates stronger free cash flow (-45M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 46/100), backed by strong 22.2% margins and 43.9% revenue growth. AQN offers better value entry with a 71.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Algonquin Power & Utilities Corp

UTILITIES · UTILITIES - DIVERSIFIED · USA

Algonquin Power & Utilities Corp. The company is headquartered in Oakville, Canada.

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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.

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