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AWK vs. SBS: A Head-to-Head Stock Comparison

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Here’s a clear look at AWK and SBS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

AWK is a standard domestic listing, while SBS trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolAWKSBS
Company NameAmerican Water Works Company, Inc.Companhia de Saneamento Básico do Estado de São Paulo - SABESP
CountryUnited StatesBrazil
GICS SectorUtilitiesUtilities
GICS IndustryWater UtilitiesWater Utilities
Market Capitalization28.41 billion USD15.17 billion USD
ExchangeNYSENYSE
Listing DateApril 23, 2008May 10, 2002
Security TypeCommon StockADR

Historical Performance

This chart compares the performance of AWK and SBS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

AWK vs. SBS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAWKSBS
5-Day Price Return1.03%-3.81%
13-Week Price Return1.86%-3.43%
26-Week Price Return16.15%17.52%
52-Week Price Return3.00%16.82%
Month-to-Date Return3.54%6.39%
Year-to-Date Return16.64%30.20%
10-Day Avg. Volume1.42M3.54M
3-Month Avg. Volume1.33M3.13M
3-Month Volatility19.72%30.98%
Beta0.720.89

Profitability

Return on Equity (TTM)

AWK

10.34%

Water Utilities Industry

Max
14.76%
Q3
13.44%
Median
10.08%
Q1
6.84%
Min
5.11%

AWK’s Return on Equity of 10.34% is on par with the norm for the Water Utilities industry, indicating its profitability relative to shareholder equity is typical for the sector.

SBS

28.24%

Water Utilities Industry

Max
14.76%
Q3
13.44%
Median
10.08%
Q1
6.84%
Min
5.11%

SBS’s Return on Equity of 28.24% is exceptionally high, placing it well beyond the typical range for the Water Utilities industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AWK vs. SBS: A comparison of their Return on Equity (TTM) against the Water Utilities industry benchmark.

Net Profit Margin (TTM)

AWK

21.91%

Water Utilities Industry

Max
33.53%
Q3
23.04%
Median
13.50%
Q1
8.95%
Min
-3.68%

AWK’s Net Profit Margin of 21.91% is aligned with the median group of its peers in the Water Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.

SBS

33.53%

Water Utilities Industry

Max
33.53%
Q3
23.04%
Median
13.50%
Q1
8.95%
Min
-3.68%

A Net Profit Margin of 33.53% places SBS in the upper quartile for the Water Utilities industry, signifying strong profitability and more effective cost management than most of its peers.

AWK vs. SBS: A comparison of their Net Profit Margin (TTM) against the Water Utilities industry benchmark.

Operating Profit Margin (TTM)

AWK

36.48%

Water Utilities Industry

Max
54.67%
Q3
39.13%
Median
31.40%
Q1
24.32%
Min
7.04%

AWK’s Operating Profit Margin of 36.48% is around the midpoint for the Water Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.

SBS

54.67%

Water Utilities Industry

Max
54.67%
Q3
39.13%
Median
31.40%
Q1
24.32%
Min
7.04%

An Operating Profit Margin of 54.67% places SBS in the upper quartile for the Water Utilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AWK vs. SBS: A comparison of their Operating Profit Margin (TTM) against the Water Utilities industry benchmark.

Profitability at a Glance

SymbolAWKSBS
Return on Equity (TTM)10.34%28.24%
Return on Assets (TTM)3.29%13.32%
Net Profit Margin (TTM)21.91%33.53%
Operating Profit Margin (TTM)36.48%54.67%
Gross Profit Margin (TTM)--16.67%

Financial Strength

Current Ratio (MRQ)

AWK

0.35

Water Utilities Industry

Max
1.94
Q3
1.40
Median
1.09
Q1
0.77
Min
0.38

AWK’s Current Ratio of 0.35 is notably low, falling beneath the typical range for the Water Utilities industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.

SBS

1.09

Water Utilities Industry

Max
1.94
Q3
1.40
Median
1.09
Q1
0.77
Min
0.38

SBS’s Current Ratio of 1.09 aligns with the median group of the Water Utilities industry, indicating that its short-term liquidity is in line with its sector peers.

AWK vs. SBS: A comparison of their Current Ratio (MRQ) against the Water Utilities industry benchmark.

Debt-to-Equity Ratio (MRQ)

AWK

1.40

Water Utilities Industry

Max
5.48
Q3
3.71
Median
1.82
Q1
0.96
Min
0.58

AWK’s Debt-to-Equity Ratio of 1.40 is typical for the Water Utilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SBS

0.72

Water Utilities Industry

Max
5.48
Q3
3.71
Median
1.82
Q1
0.96
Min
0.58

Falling into the lower quartile for the Water Utilities industry, SBS’s Debt-to-Equity Ratio of 0.72 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AWK vs. SBS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Water Utilities industry benchmark.

Interest Coverage Ratio (TTM)

AWK

4.17

Water Utilities Industry

Max
5.04
Q3
4.65
Median
3.25
Q1
2.23
Min
0.58

AWK’s Interest Coverage Ratio of 4.17 is positioned comfortably within the norm for the Water Utilities industry, indicating a standard and healthy capacity to cover its interest payments.

SBS

17.26

Water Utilities Industry

Max
5.04
Q3
4.65
Median
3.25
Q1
2.23
Min
0.58

With an Interest Coverage Ratio of 17.26, SBS demonstrates a superior capacity to service its debt, placing it well above the typical range for the Water Utilities industry. This stems from either robust earnings or a conservative debt load.

AWK vs. SBS: A comparison of their Interest Coverage Ratio (TTM) against the Water Utilities industry benchmark.

Financial Strength at a Glance

SymbolAWKSBS
Current Ratio (MRQ)0.351.09
Quick Ratio (MRQ)0.321.08
Debt-to-Equity Ratio (MRQ)1.400.72
Interest Coverage Ratio (TTM)4.1717.26

Growth

Revenue Growth

AWK vs. SBS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AWK vs. SBS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AWK

2.06%

Water Utilities Industry

Max
5.64%
Q3
5.51%
Median
4.50%
Q1
2.37%
Min
0.00%

AWK’s Dividend Yield of 2.06% is in the lower quartile for the Water Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

SBS

1.18%

Water Utilities Industry

Max
5.64%
Q3
5.51%
Median
4.50%
Q1
2.37%
Min
0.00%

SBS’s Dividend Yield of 1.18% is in the lower quartile for the Water Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AWK vs. SBS: A comparison of their Dividend Yield (TTM) against the Water Utilities industry benchmark.

Dividend Payout Ratio (TTM)

AWK

56.23%

Water Utilities Industry

Max
324.59%
Q3
254.46%
Median
142.60%
Q1
57.04%
Min
12.69%

AWK’s Dividend Payout Ratio of 56.23% is in the lower quartile for the Water Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

SBS

12.69%

Water Utilities Industry

Max
324.59%
Q3
254.46%
Median
142.60%
Q1
57.04%
Min
12.69%

SBS’s Dividend Payout Ratio of 12.69% is in the lower quartile for the Water Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AWK vs. SBS: A comparison of their Dividend Payout Ratio (TTM) against the Water Utilities industry benchmark.

Dividend at a Glance

SymbolAWKSBS
Dividend Yield (TTM)2.06%1.18%
Dividend Payout Ratio (TTM)56.23%12.69%

Valuation

Price-to-Earnings Ratio (TTM)

AWK

27.30

Water Utilities Industry

Max
34.48
Q3
27.82
Median
18.45
Q1
14.12
Min
7.14

AWK’s P/E Ratio of 27.30 is within the middle range for the Water Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

SBS

7.69

Water Utilities Industry

Max
34.48
Q3
27.82
Median
18.45
Q1
14.12
Min
7.14

In the lower quartile for the Water Utilities industry, SBS’s P/E Ratio of 7.69 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AWK vs. SBS: A comparison of their Price-to-Earnings Ratio (TTM) against the Water Utilities industry benchmark.

Price-to-Sales Ratio (TTM)

AWK

5.98

Water Utilities Industry

Max
5.86
Q3
3.76
Median
2.73
Q1
2.16
Min
1.04

With a P/S Ratio of 5.98, AWK trades at a valuation that eclipses even the highest in the Water Utilities industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SBS

2.58

Water Utilities Industry

Max
5.86
Q3
3.76
Median
2.73
Q1
2.16
Min
1.04

SBS’s P/S Ratio of 2.58 aligns with the market consensus for the Water Utilities industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AWK vs. SBS: A comparison of their Price-to-Sales Ratio (TTM) against the Water Utilities industry benchmark.

Price-to-Book Ratio (MRQ)

AWK

2.54

Water Utilities Industry

Max
4.29
Q3
3.24
Median
1.73
Q1
1.09
Min
0.65

AWK’s P/B Ratio of 2.54 is within the conventional range for the Water Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

SBS

1.82

Water Utilities Industry

Max
4.29
Q3
3.24
Median
1.73
Q1
1.09
Min
0.65

SBS’s P/B Ratio of 1.82 is within the conventional range for the Water Utilities industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AWK vs. SBS: A comparison of their Price-to-Book Ratio (MRQ) against the Water Utilities industry benchmark.

Valuation at a Glance

SymbolAWKSBS
Price-to-Earnings Ratio (TTM)27.307.69
Price-to-Sales Ratio (TTM)5.982.58
Price-to-Book Ratio (MRQ)2.541.82
Price-to-Free Cash Flow Ratio (TTM)4,224.1739.10