H2O America (HTO) vs Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS)

H2O America and Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp are both Utilities Regulated Water companies. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp is the larger, with a market value of $18.1B against $2.6B — 6.9× the size. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp trades at the lower P/E: 13.2× against 21.8×. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp grew revenue faster over the last twelve months: 7.82% against 5.04%. Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp has the higher net margin (19.3% vs 12.9%) and the higher return on invested capital (9.24% vs 3.06%). Both pay a dividend; H2O America yields more (2.58% vs 1.54%). Across the 22 metrics below, Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp leads on 15 and H2O America on 7.

Valuation

Metric HTO SBS Utilities Regulated Water median
P/E 21.77 13.15 20.64
P/S 3.15 2.50 4.37
P/B 1.41 2.01 1.91
Price to free cash flow n/m n/m —
EV/EBITDA 14.35 8.81 14.48
EV/Sales 5.30 3.44 6.20
Earnings yield 4.59% 7.60% 4.83%
Free cash flow yield (10.46%) (13.60%) (4.54%)

Profitability

Metric HTO SBS Utilities Regulated Water median
Gross margin 60.99% 37.83% 71.91%
Operating margin 21.48% 32.18% 29.22%
Net margin 12.91% 19.31% 20.19%
Free cash flow margin (32.90%) (9.13%) (19.49%)
Return on equity 6.46% 17.65% 9.00%
Return on assets 2.08% 7.21% 3.21%
Return on invested capital 3.06% 9.24% 4.08%

Growth

Metric HTO SBS Utilities Regulated Water median
Revenue growth (TTM) 5.04% 7.82% 6.92%
EPS growth (last fiscal year) 1.74% (82.46%) —
Revenue growth, 5-year CAGR 7.24% 14.59% 7.24%
Net income growth, 5-year CAGR 10.77% 51.67% 9.40%

Health

Metric HTO SBS Utilities Regulated Water median
Debt to equity 1.03 1.14 0.93
Current ratio 1.67 1.47 1.01
Net debt to EBITDA 6.57 1.87 4.42

Dividend

Metric HTO SBS Utilities Regulated Water median
Dividend yield 2.58% 1.54% 2.27%
Payout ratio 0.51 0.28 0.55

Size

Metric HTO SBS Utilities Regulated Water median
Market cap 2.60b 18.06b 997.03m

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