WallStSmart

Energy Transfer LP (ET)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Energy Transfer LP generates 125% more annual revenue ($85.54B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 5.2%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

ET

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 5.5Value: 8.7Quality: 5.0

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

ETUndervalued (+86.8%)

Margin of Safety

+86.8%

Fair Value

$137.79

Current Price

$19.87

$117.92 discount

UndervaluedFair: $137.79Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.29

$4.62 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ET5 strengths · Avg: 8.2/10
Market CapQuality
$68.60B9/10

Large-cap with strong market position

PEG RatioValuation
0.738/10

Growing faster than its price suggests

P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
29.6%8/10

Revenue surging 29.6% year-over-year

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

ET3 concerns · Avg: 2.3/10
Profit MarginProfitability
5.2%3/10

5.2% margin — thin

EPS GrowthGrowth
-15.2%2/10

Earnings declined 15.2%

Free Cash FlowQuality
$-225.00M2/10

Negative free cash flow — burning cash

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 : ET

The strongest argument for ET centers on Market Cap, PEG Ratio, P/E Ratio. Revenue growth of 29.6% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.

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 : ET

The primary concerns for ET are Profit Margin, EPS Growth, 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

ET carries more volatility with a beta of 0.62 — expect wider price swings.

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

ET generates stronger free cash flow (-225M), providing more financial flexibility.

Monitor OIL & GAS MIDSTREAM industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SBS scores higher overall (77/100 vs 63/100), backed by strong 22.2% margins and 43.9% revenue growth. ET offers better value entry with a 86.8% 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 Transfer LP

ENERGY · OIL & GAS MIDSTREAM · USA

Energy Transfer LP offers energy related services. The company is headquartered in Dallas, Texas.

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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