WallStSmart

Consolidated Water Co Ltd (CWCO)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 28742% more annual revenue ($38.09B vs $132.07M). SBS leads profitability with a 22.2% profit margin vs 13.9%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 87/100 (A).

CWCO

Buy

52

out of 100

Grade: C-

Growth: 7.3Profit: 6.0Value: 10.0Quality: 5.0

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

CWCOUndervalued (+31.5%)

Margin of Safety

+31.5%

Fair Value

$54.29

Current Price

$32.46

$21.83 discount

UndervaluedFair: $54.29Overvalued
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

CWCO2 strengths · Avg: 9.0/10
EPS GrowthGrowth
103.8%10/10

Earnings expanding 103.8% YoY

Price/BookValuation
2.3x8/10

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

CWCO4 concerns · Avg: 3.8/10
PEG RatioValuation
2.254/10

Expensive relative to growth rate

P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Market CapQuality
$487.23M3/10

Smaller company, higher risk/reward

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 : CWCO

The strongest argument for CWCO centers on EPS Growth, 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 : CWCO

The primary concerns for CWCO are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : SBS

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

Key Dynamics to Monitor

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

CWCO carries more volatility with a beta of 0.50 — 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 52/100), backed by strong 22.2% margins and 43.9% revenue growth. CWCO offers better value entry with a 31.5% margin of safety. 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.

Consolidated Water Co Ltd

UTILITIES · UTILITIES - REGULATED WATER · USA

Consolidated Water Co. Ltd. designs, builds, manages and operates water treatment and production plants primarily in the Cayman Islands, the Bahamas and the United States. The company is headquartered in Grand Cayman, the Cayman Islands.

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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