SBS vs DHR

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 2. 9% for Danaher Corporation (DHR). 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 Danaher Corporation (DHR) a "Buy" — based on 42 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 Danaher Corporation at 34. 7x. 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 Danaher Corporation's 34. 20x — 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 -20. 9% for Danaher Corporation (DHR). Over 10 years, the gap is even starker: SBS returned +379. 1% versus DHR's +218. 0%. 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), Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the lower-risk stock at 0.

82β versus Danaher Corporation's 0. 94β — meaning DHR is approximately 14% more volatile than SBS relative to the S&P 500. On balance sheet safety, Danaher Corporation (DHR) carries a lower debt/equity ratio of 35% versus 94% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP — 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 2. 9% for Danaher Corporation (DHR). On earnings-per-share growth, the picture is similar: Danaher Corporation grew EPS -4. 7% year-over-year, compared to -13. 7% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP. 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 14. 7% for Danaher Corporation — 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 20. 9% for DHR. At the gross margin level — before operating expenses — DHR leads at 60. 9%, 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 Danaher Corporation's 34. 20x. 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 20. 7x for Danaher Corporation — 17. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DHR: 41. 2% to $247. 00.

All stocks in this comparison pay dividends.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) offers the highest yield at 2. 1%, versus 0. 7% for Danaher Corporation (DHR).

For long-horizon retirement investors, Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

82), 2. 1% yield, +379. 1% 10Y return). Both have compounded well over 10 years (SBS: +379. 1%, DHR: +218. 0%), 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.

These companies operate in different sectors (SBS (Utilities) and DHR (Healthcare)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: SBS is a mid-cap deep-value stock; DHR is a mid-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.