AXIA Energia (AXIA)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
AXIA
AXIA Energia
$12.55
+4.06%
UTILITIES · Cap: $28.16B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$33.63
+2.09%
UTILITIES · Cap: $118.61B
Smart Verdict
WallStSmart Research — data-driven comparison
AXIA Energia generates 8% more annual revenue ($41.28B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 15.9%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).
AXIA
Strong Buy66
out of 100
Grade: B-
SBS
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+36.7%
Fair Value
$18.21
Current Price
$12.55
$5.66 discount
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$33.63
$4.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 60.9%
Earnings expanding 1141.0% YoY
Reasonable price relative to book value
Generating 2.3B in free cash flow
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
Areas to Watch
ROE of 5.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Revenue declined 11.3%
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AXIA
The strongest argument for AXIA centers on Operating Margin, EPS Growth, Price/Book. Profitability is solid with margins at 15.9% and operating margin at 60.9%.
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 : AXIA
The primary concerns for AXIA are Return on Equity, Piotroski F-Score, PEG Ratio.
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
AXIA profiles as a declining stock while SBS is a growth play — different risk/reward profiles.
AXIA carries more volatility with a beta of 0.33 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
AXIA generates stronger free cash flow (2.3B), providing more financial flexibility.
Bottom Line
SBS scores higher overall (77/100 vs 66/100), backed by strong 22.2% margins and 43.9% revenue growth. AXIA offers better value entry with a 36.7% margin of safety. Both earn "Strong Buy" and "Strong 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.
AXIA Energia
UTILITIES · UTILITIES - RENEWABLE · USA
Centrais Eltricas Brasileiras S.A. - Eletrobrs, engages in the generation, transmission, and commercialization of electricity in Brazil. The company is headquartered in Rio de Janeiro, Brazil.
Visit Website →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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