WallStSmart

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsTalen Energy Corporation (TLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 1125% more annual revenue ($39.63B vs $3.24B). SBS leads profitability with a 22.0% profit margin vs -0.7%. SBS earns a higher WallStSmart Score of 79/100 (B+).

SBS

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 8.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.43

TLN

Hold

48

out of 100

Grade: D+

Growth: 8.0Profit: 4.0Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.29

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SBS6 strengths · Avg: 9.2/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

P/E RatioValuation
11.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.0%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.3%8/10

18.3% revenue growth

TLN2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
96.7%10/10

Revenue surging 96.7% year-over-year

EPS GrowthGrowth
34.5%8/10

Earnings expanding 34.5% YoY

Areas to Watch

SBS3 concerns · Avg: 2.7/10
Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
1.432/10

Distress zone — elevated risk

TLN4 concerns · Avg: 2.8/10
Price/BookValuation
15.4x4/10

Trading at 15.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-2.0%2/10

ROE of -2.0% — below average capital efficiency

Altman Z-ScoreHealth
0.292/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : TLN

The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 96.7% demonstrates continued momentum.

Bear Case : SBS

The primary concerns for SBS are Debt/Equity, Piotroski F-Score, Altman Z-Score.

Bear Case : TLN

The primary concerns for TLN are Price/Book, Piotroski F-Score, Return on Equity. Debt-to-equity of 6.34 is elevated, increasing financial risk.

Key Dynamics to Monitor

SBS profiles as a growth stock while TLN is a hypergrowth play — different risk/reward profiles.

TLN carries more volatility with a beta of 1.60 — expect wider price swings.

TLN is growing revenue faster at 96.7% — sustainability is the question.

SBS generates stronger free cash flow (722M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (79/100 vs 48/100), backed by strong 22.0% margins and 18.3% 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.

Talen Energy Corporation

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Talen Energy Corporation (Ticker: TLN) is a prominent power generation and infrastructure firm based in the United States, focused on delivering reliable and sustainable energy solutions through a diverse portfolio that encompasses both traditional and renewable sources. The company's strategic initiatives are aimed at addressing the increasing demand for electricity while enhancing environmental sustainability and grid resilience. With a commitment to innovation and technological advancement, Talen Energy is well-positioned to capitalize on the evolving energy landscape, making it an appealing investment opportunity for institutional investors seeking exposure to the transition toward cleaner energy alternatives.

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