WallStSmart

California Water Service Group (CWT)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 3659% more annual revenue ($39.63B vs $1.05B). SBS leads profitability with a 22.0% profit margin vs 12.6%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).

CWT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

SBS

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 8.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.7%)

Margin of Safety

+21.7%

Fair Value

$56.40

Current Price

$50.53

$5.87 discount

UndervaluedFair: $56.40Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT4 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
31.4%8/10

Earnings expanding 31.4% YoY

SBS6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-80.07M2/10

Negative free cash flow — burning cash

SBS3 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum.

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 22.0% and operating margin at 33.9%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : SBS

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

Key Dynamics to Monitor

CWT carries more volatility with a beta of 0.51 — expect wider price swings.

SBS is growing revenue faster at 18.3% — sustainability is the question.

SBS generates stronger free cash flow (722M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SBS scores higher overall (79/100 vs 67/100), backed by strong 22.0% margins and 18.3% revenue growth. CWT offers better value entry with a 21.7% 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.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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.

Want to dig deeper into these stocks?