Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsSouthern Company (SO)
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$5.35
-0.18%
UTILITIES · Cap: $19.18B
SO
Southern Company
$92.60
+1.22%
UTILITIES · Cap: $102.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 31% more annual revenue ($39.63B vs $30.18B). SBS leads profitability with a 22.0% profit margin vs 14.5%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 79/100 (B+).
SBS
Strong Buy79
out of 100
Grade: B+
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SBS.
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 33.9%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
18.3% revenue growth
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Elevated debt levels
Weak financial health signals
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : SBS
The primary concerns for SBS are Debt/Equity, Piotroski F-Score, Altman Z-Score.
Bear Case : SO
The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
SBS profiles as a growth stock while SO is a value play — different risk/reward profiles.
SO carries more volatility with a beta of 0.36 — 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.
Bottom Line
SBS scores higher overall (79/100 vs 56/100), backed by strong 22.0% margins and 18.3% 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.
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.
Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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