SBS vs YORW

For growth investors, The York Water Company (YORW) is the stronger pick with 3.

4% revenue growth year-over-year, versus 3. 3% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS). 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 Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) a "Hold" — based on 7 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 The York Water Company at 21. 0x. 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 The York Water Company's 9. 89x — 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 -32. 0% for The York Water Company (YORW). Over 10 years, the gap is even starker: SBS returned +528. 6% versus YORW's +25. 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), The York Water Company (YORW) is the lower-risk stock at 0.

08β versus Companhia de Saneamento Básico do Estado de São Paulo - SABESP's 0. 82β — meaning SBS is approximately 961% more volatile than YORW 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 97% for The York Water Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The York Water Company (YORW) is pulling ahead at 3.

4% versus 3. 3% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS). On earnings-per-share growth, the picture is similar: The York Water Company grew EPS -2. 1% 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.

The York Water Company (YORW) is the more profitable company, earning 25.

9% net margin versus 22. 2% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP — meaning it keeps 25. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: YORW leads at 35. 8% versus 32. 2% for SBS. At the gross margin level — before operating expenses — YORW leads at 54. 8%, 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 The York Water Company's 9. 89x. 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 18. 0x for The York Water Company — 17. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

The York Water Company (YORW) offers the highest yield at 3. 0%, versus 2. 1% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS).

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

08), 3. 0% yield). Both have compounded well over 10 years (YORW: +25. 0%, 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; YORW is a small-cap income-oriented 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.