SBS vs MSEX

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 1. 5% for Middlesex Water Company (MSEX). Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) offers the better valuation at 13. 0x trailing P/E (0. 7x forward), making it the more compelling value choice. Analysts rate Middlesex Water Company (MSEX) a "Buy" — based on 4 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.

0x versus Middlesex Water Company at 21. 8x. On forward P/E, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is actually cheaper at 0. 7x. 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. 01x versus Middlesex Water Company's 12. 58x — 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 +415.

1%, compared to -28. 4% for Middlesex Water Company (MSEX). Over 10 years, the gap is even starker: SBS returned +528. 6% versus MSEX's +62. 9%. 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), Middlesex Water Company (MSEX) is the lower-risk stock at -0.

12β versus Companhia de Saneamento Básico do Estado de São Paulo - SABESP's 0. 82β — meaning SBS is approximately -764% more volatile than MSEX relative to the S&P 500. On balance sheet safety, Middlesex Water Company (MSEX) carries a lower debt/equity ratio of 85% 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 1. 5% for Middlesex Water Company (MSEX). On earnings-per-share growth, the picture is similar: Middlesex Water Company grew EPS -4. 5% year-over-year, compared to -13. 6% 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 22. 0% for Middlesex Water Company — 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 27. 9% for MSEX. At the gross margin level — before operating expenses — MSEX leads at 39. 2%, 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. 01x versus Middlesex Water Company's 12. 58x. 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 0. 7x forward P/E versus 20. 1x for Middlesex Water Company — 19. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SBS: 273. 5% to $23. 79.

All stocks in this comparison pay dividends.

Middlesex Water Company (MSEX) offers the highest yield at 2. 7%, versus 2. 1% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS).

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

12), 2. 7% yield). Both have compounded well over 10 years (MSEX: +62. 9%, SBS: +528. 6%), 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; MSEX 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.