WallStSmart

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)vsUNITIL Corporation (UTL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR generates 7007% more annual revenue ($38.09B vs $536.00M). SBS leads profitability with a 22.2% profit margin vs 9.4%. SBS appears more attractively valued with a PEG of 0.47. SBS earns a higher WallStSmart Score of 77/100 (B+).

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81

UTL

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 6.5Value: 5.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.63

$4.96 premium

UndervaluedFair: $28.67Overvalued
UTLUndervalued (+12.6%)

Margin of Safety

+12.6%

Fair Value

$58.31

Current Price

$52.46

$5.85 discount

UndervaluedFair: $58.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SBS6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
87.2%10/10

Earnings expanding 87.2% YoY

Market CapQuality
$118.61B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

UTL4 strengths · Avg: 8.0/10
P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Revenue GrowthGrowth
26.7%8/10

Revenue surging 26.7% year-over-year

Areas to Watch

SBS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.2x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-8.22B2/10

Negative free cash flow — burning cash

UTL4 concerns · Avg: 2.8/10
Market CapQuality
$953.08M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.543/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.372/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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 : UTL

The strongest argument for UTL centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 26.7% demonstrates continued momentum.

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 : UTL

The primary concerns for UTL are Market Cap, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.54 is elevated, increasing financial risk.

Key Dynamics to Monitor

UTL carries more volatility with a beta of 0.44 — expect wider price swings.

SBS is growing revenue faster at 43.9% — sustainability is the question.

UTL generates stronger free cash flow (-36M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SBS scores higher overall (77/100 vs 60/100), backed by strong 22.2% margins and 43.9% 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.

UNITIL Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

Unitil Corporation, a utility holding company, is engaged in the distribution of electricity and natural gas. The company is headquartered in Hampton, New Hampshire.

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