Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsTransAlta Corp (TAC)
SBS
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR
$5.29
-0.56%
UTILITIES · Cap: $18.11B
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 1704% more annual revenue ($40.88B vs $2.27B). SBS leads profitability with a 19.7% profit margin vs -1.0%. 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-
TAC
Hold43
out of 100
Grade: D
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
Strong operational efficiency at 33.3%
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Earnings declined 33.9%
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
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 : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : SBS
The primary concerns for SBS are Altman Z-Score, Debt/Equity, Piotroski F-Score.
Bear Case : TAC
The primary concerns for TAC are Piotroski F-Score, PEG Ratio, Return on Equity. Debt-to-equity of 2.38 is elevated, increasing financial risk.
Key Dynamics to Monitor
SBS profiles as a mature stock while TAC is a turnaround play — different risk/reward profiles.
TAC carries more volatility with a beta of 0.46 — expect wider price swings.
SBS is growing revenue faster at 13.9% — sustainability is the question.
TAC generates stronger free cash flow (17M), providing more financial flexibility.
Bottom Line
SBS scores higher overall (69/100 vs 43/100), backed by strong 19.7% margins and 13.9% revenue growth. 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.
TransAlta Corp
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.
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