H2O America (HTO)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)
HTO
H2O America
$61.80
+1.25%
UTILITIES · Cap: $2.41B
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$4.67
-1.89%
UTILITIES · Cap: $16.70B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 4834% more annual revenue ($40.88B vs $828.50M). SBS leads profitability with a 19.7% profit margin vs 12.9%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 72/100 (B).
HTO
Buy55
out of 100
Grade: C
SBS
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.4%
Fair Value
$73.58
Current Price
$61.80
$11.78 discount
Intrinsic value data unavailable for SBS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 31.5%
Reasonable price relative to book value
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Earnings declined 33.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : SBS
The strongest argument for SBS centers on PEG Ratio, P/E Ratio, Operating Margin. Profitability is solid with margins at 19.7% and operating margin at 31.5%. Revenue growth of 13.9% demonstrates continued momentum.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/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
HTO profiles as a value stock while SBS is a mature play — different risk/reward profiles.
HTO carries more volatility with a beta of 0.32 — expect wider price swings.
SBS is growing revenue faster at 13.9% — sustainability is the question.
HTO generates stronger free cash flow (-63M), providing more financial flexibility.
Bottom Line
SBS scores higher overall (72/100 vs 55/100), backed by strong 19.7% margins and 13.9% revenue growth. HTO offers better value entry with a 29.4% 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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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