Head-To-Head Comparison: Companhia de Saneamento Basico (SBS) vs. The Competition

Companhia de Saneamento Basico (NYSE: SBS) is one of 15 publicly-traded companies in the “Water supply” industry, but how does it contrast to its peers? We will compare Companhia de Saneamento Basico to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, risk, institutional ownership and dividends.

Profitability

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This table compares Companhia de Saneamento Basico and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Companhia de Saneamento Basico 17.29% 14.98% 6.67%
Companhia de Saneamento Basico Competitors 10.39% 8.90% 2.65%

Earnings and Valuation

This table compares Companhia de Saneamento Basico and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Companhia de Saneamento Basico $4.58 billion $789.53 million 8.54
Companhia de Saneamento Basico Competitors $722.21 million $111.68 million 23.07

Companhia de Saneamento Basico has higher revenue and earnings than its peers. Companhia de Saneamento Basico is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Companhia de Saneamento Basico and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Companhia de Saneamento Basico 1 4 1 0 2.00
Companhia de Saneamento Basico Competitors 87 225 252 13 2.33

As a group, “Water supply” companies have a potential upside of 3.92%. Given Companhia de Saneamento Basico’s peers stronger consensus rating and higher possible upside, analysts clearly believe Companhia de Saneamento Basico has less favorable growth aspects than its peers.

Risk & Volatility

Companhia de Saneamento Basico has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Companhia de Saneamento Basico’s peers have a beta of 0.51, indicating that their average stock price is 49% less volatile than the S&P 500.

Institutional and Insider Ownership

16.2% of Companhia de Saneamento Basico shares are owned by institutional investors. Comparatively, 49.3% of shares of all “Water supply” companies are owned by institutional investors. 1.0% of Companhia de Saneamento Basico shares are owned by insiders. Comparatively, 11.1% of shares of all “Water supply” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Companhia de Saneamento Basico peers beat Companhia de Saneamento Basico on 7 of the 13 factors compared.

About Companhia de Saneamento Basico

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company’s segments include Water and Sewage. The Company also supplies treated water on a wholesale basis to approximately 10 municipalities located in the Sao Paulo metropolitan region and urban conurbations. The Company’s activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities.

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