WallStSmart

Energy of Minas Gerais Co DRC (CIG-C)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy of Minas Gerais Co DRC generates 1628% more annual revenue ($42.75B vs $2.47B). WTRG leads profitability with a 24.9% profit margin vs 11.5%. CIG-C appears more attractively valued with a PEG of 0.33. CIG-C earns a higher WallStSmart Score of 72/100 (B).

CIG-C

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 8.3Quality: 5.0

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CIG-C.

WTRGUndervalued (+47.6%)

Margin of Safety

+47.6%

Fair Value

$71.49

Current Price

$38.20

$33.29 discount

UndervaluedFair: $71.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CIG-C5 strengths · Avg: 9.2/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
9.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

WTRG5 strengths · Avg: 8.6/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

CIG-C1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CIG-C

The strongest argument for CIG-C centers on PEG Ratio, P/E Ratio, EPS Growth. PEG of 0.33 suggests the stock is reasonably priced for its growth.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : CIG-C

The primary concerns for CIG-C are Revenue Growth.

Bear Case : WTRG

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

Key Dynamics to Monitor

CIG-C profiles as a value stock while WTRG is a growth play — different risk/reward profiles.

WTRG carries more volatility with a beta of 0.77 — expect wider price swings.

WTRG is growing revenue faster at 15.7% — sustainability is the question.

CIG-C generates stronger free cash flow (440M), providing more financial flexibility.

Bottom Line

CIG-C scores higher overall (72/100 vs 60/100). WTRG offers better value entry with a 47.6% 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.

Energy of Minas Gerais Co DRC

UTILITIES · UTILITIES - DIVERSIFIED · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, 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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