WallStSmart

H2O America (HTO)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

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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

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 5.3Quality: 3.5
Piotroski: 1/9Altman Z: 0.68

SBS

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.54
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+29.4%)

Margin of Safety

+29.4%

Fair Value

$73.58

Current Price

$61.80

$11.78 discount

UndervaluedFair: $73.58Overvalued

Intrinsic value data unavailable for SBS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

SBS4 strengths · Avg: 9.5/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

HTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Debt/EquityHealth
1.033/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.682/10

Expensive relative to growth rate

SBS4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.544/10

Distress zone — elevated risk

Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-33.9%2/10

Earnings declined 33.9%

Comparative Analysis Report

WallStSmart Research

Bull 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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