Analyzing Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (SBS) & Pure Cycle Corporation (PCYO)

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE: SBS) and Pure Cycle Corporation (NASDAQ:PCYO) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays an annual dividend of $0.29 per share and has a dividend yield of 2.7%. Pure Cycle Corporation does not pay a dividend. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays out 25.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

15.9% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are held by institutional investors. Comparatively, 67.9% of Pure Cycle Corporation shares are held by institutional investors. 1.0% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are held by company insiders. Comparatively, 4.6% of Pure Cycle Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Pure Cycle Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp $4.63 billion 1.58 $1.55 billion $1.14 9.39
Pure Cycle Corporation $719,142.00 252.69 -$1.65 million ($0.07) -109.27

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has higher revenue and earnings than Pure Cycle Corporation. Pure Cycle Corporation is trading at a lower price-to-earnings ratio than Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Pure Cycle Corporation has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Pure Cycle Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp 17.17% 16.39% 7.11%
Pure Cycle Corporation -240.61% -2.39% -2.32%

Analyst Ratings

This is a summary of recent ratings and price targets for Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Pure Cycle Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp 1 3 1 0 2.00
Pure Cycle Corporation 0 0 1 0 3.00

Summary

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp beats Pure Cycle Corporation on 8 of the 13 factors compared between the two stocks.

About Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP is a water and sewage service provider. The Company provides water and sewage services to a range of residential, commercial, industrial and governmental customers in over 360 municipalities in the state of Sao Paulo, including the city of Sao Paulo. The Company’s segments include Water and Sewage. The Company also supplies treated water on a wholesale basis to approximately 10 municipalities located in the Sao Paulo metropolitan region and urban conurbations. The Company’s activities comprise water supply, sanitary sewage services, urban rainwater management and drainage services, urban cleaning services, solid waste management services and related activities, including the planning, operation, maintenance and commercialization of energy, and the commercialization of services, products, benefits and rights that directly or indirectly arise from its assets, operations and activities.

About Pure Cycle Corporation

Pure Cycle Corporation is an integrated water company that provides wholesale water and wastewater services. The Company provides its services to wholesale customers, which include industrial customers and local governmental entities that provide water and wastewater services to their end-use customers located in the Denver, Colorado metropolitan area. The Company is engaged in selling water service to customers, using water rights owned or controlled by the Company and developing infrastructure to divert, treat and distribute that water and collect, treat and reuse wastewater. The Company owns a portfolio of water rights located in the Denver, Colorado metropolitan area, Southeastern Colorado in the Arkansas River, and the Western Slope of Colorado in the Colorado River. The Company’s Denver area assets include Rangeview Water, the Lowry Range Property, Sky Ranch and Arapahoe County Fairgrounds.

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