SBS vs CWT

For growth investors, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the stronger pick with 3.

3% revenue growth year-over-year, versus -3. 5% for California Water Service Group (CWT). Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) offers the better valuation at 13. 5x trailing P/E (3. 4x forward), making it the more compelling value choice. Analysts rate California Water Service Group (CWT) a "Buy" — based on 10 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the cheapest at 13.

5x versus California Water Service Group at 20. 0x. On forward P/E, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is actually cheaper at 3. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Companhia de Saneamento Básico do Estado de São Paulo - SABESP wins at 0. 06x versus California Water Service Group's 9. 44x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) delivered a total return of +348.

0%, compared to -16. 3% for California Water Service Group (CWT). Over 10 years, the gap is even starker: SBS returned +379. 1% versus CWT's +81. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), California Water Service Group (CWT) is the lower-risk stock at -0.

26β versus Companhia de Saneamento Básico do Estado de São Paulo - SABESP's 0. 82β — meaning SBS is approximately -412% more volatile than CWT relative to the S&P 500. On balance sheet safety, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) carries a lower debt/equity ratio of 94% versus 95% for California Water Service Group — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is pulling ahead at 3.

3% versus -3. 5% for California Water Service Group (CWT). On earnings-per-share growth, the picture is similar: Companhia de Saneamento Básico do Estado de São Paulo - SABESP grew EPS -13. 7% year-over-year, compared to -33. 8% for California Water Service Group. Over a 3-year CAGR, SBS leads at 19. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the more profitable company, earning 22.

2% net margin versus 12. 8% for California Water Service Group — meaning it keeps 22. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SBS leads at 32. 2% versus 18. 2% for CWT. At the gross margin level — before operating expenses — CWT leads at 36. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the more undervalued stock at a PEG of 0. 06x versus California Water Service Group's 9. 44x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) trades at 3. 4x forward P/E versus 16. 7x for California Water Service Group — 13. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CWT: 25. 5% to $54. 00.

All stocks in this comparison pay dividends.

California Water Service Group (CWT) offers the highest yield at 2. 9%, versus 2. 1% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS).

For long-horizon retirement investors, California Water Service Group (CWT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

26), 2. 9% yield). Both have compounded well over 10 years (CWT: +81. 3%, SBS: +379. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SBS is a mid-cap deep-value stock; CWT is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.