Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsSonos Inc (SONO)
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$33.29
-1.01%
UTILITIES · Cap: $118.61B
SONO
Sonos Inc
$14.76
+5.35%
TECHNOLOGY · Cap: $1.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 2549% more annual revenue ($38.09B vs $1.44B). SBS leads profitability with a 22.2% profit margin vs -1.2%. SBS earns a higher WallStSmart Score of 77/100 (B+).
SBS
Strong Buy77
out of 100
Grade: B+
SONO
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-3.2%
Fair Value
$28.67
Current Price
$33.29
$4.62 premium
Margin of Safety
+42.0%
Fair Value
$28.47
Current Price
$14.76
$13.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Strong operational efficiency at 34.6%
Revenue surging 43.9% year-over-year
Earnings expanding 87.2% YoY
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Earnings expanding 87.5% YoY
Areas to Watch
Grey zone — moderate risk
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
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.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
SBS profiles as a growth stock while SONO is a turnaround play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
SBS is growing revenue faster at 43.9% — sustainability is the question.
SONO generates stronger free cash flow (-169M), providing more financial flexibility.
Bottom Line
SBS scores higher overall (77/100 vs 42/100), backed by strong 22.2% margins and 43.9% revenue growth. SONO offers better value entry with a 42.0% margin of safety. Both earn "Strong Buy" and "Hold" 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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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