WallStSmart

Black Hills Corporation (BKH)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 1549% more annual revenue ($38.09B vs $2.31B). SBS leads profitability with a 22.2% profit margin vs 12.6%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

BKH

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 5.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

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

BKHUndervalued (+16.7%)

Margin of Safety

+16.7%

Fair Value

$87.12

Current Price

$74.31

$12.81 discount

UndervaluedFair: $87.12Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$32.94

$4.27 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKH2 strengths · Avg: 9.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

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

BKH4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

PEG RatioValuation
2.732/10

Expensive relative to growth rate

Free Cash FlowQuality
$-101.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

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 : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin.

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 : BKH

The primary concerns for BKH are EPS Growth, PEG Ratio, Free Cash Flow.

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

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

BKH carries more volatility with a beta of 0.71 — expect wider price swings.

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

BKH generates stronger free cash flow (-102M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 57/100), backed by strong 22.2% margins and 43.9% revenue growth. BKH offers better value entry with a 16.7% 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.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

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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