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
$5.22
-1.32%
UTILITIES · Cap: $18.11B
SO
Southern Company
$87.02
-0.17%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 35% more annual revenue ($40.88B vs $30.18B). SBS leads profitability with a 19.7% profit margin vs 15.4%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 69/100 (B-).
SBS
Strong Buy69
out of 100
Grade: B-
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for SBS.
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.02
$24.96 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 31.5%
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Earnings declined 33.9%
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
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 19.7% and operating margin at 31.5%. Revenue growth of 13.9% demonstrates continued momentum.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : SBS
The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
SBS profiles as a mature stock while SO is a value play — different risk/reward profiles.
SO 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.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Bottom Line
SBS scores higher overall (69/100 vs 66/100), backed by strong 19.7% margins and 13.9% revenue growth. Both earn "Strong Buy" and "Strong 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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