UGP vs VALE vs RIO vs SBS vs BHP

For growth investors, Ultrapar Participações S.

A. (UGP) is the stronger pick with 6. 6% revenue growth year-over-year, versus -7. 9% for BHP Group Limited (BHP). Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) offers the better valuation at 13. 0x trailing P/E (0. 6x forward), making it the more compelling value choice. Analysts rate Ultrapar Participações S. A. (UGP) 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.

0x versus Vale S. A. at 28. 7x. On forward P/E, Companhia de Saneamento Básico do Estado de São Paulo - SABESP is actually cheaper at 0. 6x. 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 BHP Group Limited's 5. 93x — 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 +381.

8%, compared to +7. 6% for Vale S. A. (VALE). Over 10 years, the gap is even starker: VALE returned +510. 3% versus UGP's -24. 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), Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) is the lower-risk stock at 0.

63β versus BHP Group Limited's 1. 29β — meaning BHP is approximately 107% more volatile than SBS relative to the S&P 500. On balance sheet safety, Rio Tinto Group (RIO) carries a lower debt/equity ratio of 24% versus 123% for Ultrapar Participações S. A. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ultrapar Participações S.

A. (UGP) is pulling ahead at 6. 6% versus -7. 9% for BHP Group Limited (BHP). On earnings-per-share growth, the picture is similar: Rio Tinto Group grew EPS 14. 8% year-over-year, compared to -57. 7% for Vale S. A.. 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 1. 7% for Ultrapar Participações S. A. — meaning it keeps 22. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BHP leads at 38. 0% versus 3. 4% for UGP. At the gross margin level — before operating expenses — BHP leads at 82. 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 BHP Group Limited's 5. 93x. 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. 6x forward P/E versus 16. 6x for BHP Group Limited — 16. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SBS: 274. 6% to $23. 79.

All stocks in this comparison pay dividends.

Ultrapar Participações S. A. (UGP) offers the highest yield at 6. 4%, versus 2. 2% for Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS).

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.

63), 2. 2% yield, +506. 8% 10Y return). Both have compounded well over 10 years (SBS: +506. 8%, BHP: +401. 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 (UGP (Energy) and VALE (Basic Materials) and RIO (Basic Materials) and SBS (Utilities) and BHP (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: UGP is a small-cap deep-value stock; VALE is a mid-cap income-oriented stock; RIO is a large-cap deep-value stock; SBS is a mid-cap deep-value stock; BHP is a large-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.