WallStSmart

Otter Tail Corporation (OTTR)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 2821% more annual revenue ($38.09B vs $1.30B). SBS leads profitability with a 22.2% profit margin vs 21.2%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

OTTR

Buy

61

out of 100

Grade: C+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 6.3
Piotroski: 2/9Altman Z: 1.67

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

OTTRSignificantly Overvalued (-62.4%)

Margin of Safety

-62.4%

Fair Value

$52.93

Current Price

$88.89

$35.96 premium

UndervaluedFair: $52.93Overvalued
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

OTTR4 strengths · Avg: 8.3/10
Profit MarginProfitability
21.2%9/10

Keeps 21 of every $100 in revenue as profit

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

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

OTTR4 concerns · Avg: 3.8/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : OTTR

The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 22.2%.

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 : OTTR

The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.

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

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

OTTR carries more volatility with a beta of 0.49 — expect wider price swings.

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

OTTR generates stronger free cash flow (22M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 61/100), backed by strong 22.2% margins and 43.9% revenue growth. 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.

Otter Tail Corporation

INDUSTRIALS · CONGLOMERATES · USA

Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.

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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