WallStSmart

American Water Works (AWK)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 641% more annual revenue ($38.09B vs $5.14B). SBS leads profitability with a 22.2% profit margin vs 21.6%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 87/100 (A).

AWK

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 7.3Quality: 3.3
Piotroski: 2/9Altman Z: 0.64

SBS

Exceptional Buy

87

out of 100

Grade: A

Growth: 9.3Profit: 8.5Value: 10.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWKSignificantly Overvalued (-219.7%)

Margin of Safety

-219.7%

Fair Value

$38.69

Current Price

$134.59

$95.90 premium

UndervaluedFair: $38.69Overvalued
SBSUndervalued (+72.9%)

Margin of Safety

+72.9%

Fair Value

$109.04

Current Price

$29.86

$79.18 discount

UndervaluedFair: $109.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWK3 strengths · Avg: 9.0/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

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

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Areas to Watch

AWK4 concerns · Avg: 3.3/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-385.00M2/10

Negative free cash flow — burning cash

SBS2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AWK

The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 32.2%.

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 : AWK

The primary concerns for AWK are PEG Ratio, EPS Growth, Piotroski F-Score.

Bear Case : SBS

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

Key Dynamics to Monitor

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

AWK carries more volatility with a beta of 0.76 — expect wider price swings.

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

SBS generates stronger free cash flow (620M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (87/100 vs 62/100), backed by strong 22.2% margins and 43.9% revenue growth. Both earn "Exceptional 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.

American Water Works

UTILITIES · UTILITIES - REGULATED WATER · USA

American Water is an American public utility company operating in the United States and Canada.

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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