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

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

Company Profile

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

SymbolSBSTLN
Company NameCompanhia de Saneamento Básico do Estado de São Paulo - SABESPTalen Energy Corporation
CountryBrazilUnited States
GICS SectorUtilitiesUtilities
GICS IndustryWater UtilitiesIndependent Power and Renewable Electricity Producers
Market Capitalization15.15 billion USD17.43 billion USD
ExchangeNYSENasdaqGS
Listing DateMay 10, 2002June 2, 2023
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of SBS and TLN 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.

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

Historical Performance at a Glance

SymbolSBSTLN
5-Day Price Return1.26%5.19%
13-Week Price Return-1.60%55.83%
26-Week Price Return16.98%60.21%
52-Week Price Return20.09%154.56%
Month-to-Date Return8.06%0.32%
Year-to-Date Return32.25%88.01%
10-Day Avg. Volume2.43M0.89M
3-Month Avg. Volume3.04M1.05M
3-Month Volatility30.77%61.58%
Beta0.081.60

Profitability

Return on Equity (TTM)

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.

TLN

12.06%

Independent Power and Renewable Electricity Producers Industry

Max
30.49%
Q3
14.63%
Median
7.41%
Q1
3.67%
Min
-8.17%

TLN’s Return on Equity of 12.06% is on par with the norm for the Independent Power and Renewable Electricity Producers industry, indicating its profitability relative to shareholder equity is typical for the sector.

SBS vs. TLN: A comparison of their Return on Equity (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Net Profit Margin (TTM)

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.

TLN

8.75%

Independent Power and Renewable Electricity Producers Industry

Max
32.12%
Q3
16.71%
Median
10.67%
Q1
5.10%
Min
-6.37%

TLN’s Net Profit Margin of 8.75% is aligned with the median group of its peers in the Independent Power and Renewable Electricity Producers industry. This indicates its ability to convert revenue into profit is typical for the sector.

SBS vs. TLN: A comparison of their Net Profit Margin (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Operating Profit Margin (TTM)

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.

TLN

6.27%

Independent Power and Renewable Electricity Producers Industry

Max
42.59%
Q3
29.96%
Median
18.17%
Q1
12.79%
Min
4.70%

TLN’s Operating Profit Margin of 6.27% is in the lower quartile for the Independent Power and Renewable Electricity Producers industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

SBS vs. TLN: A comparison of their Operating Profit Margin (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Profitability at a Glance

SymbolSBSTLN
Return on Equity (TTM)28.24%12.06%
Return on Assets (TTM)13.32%3.03%
Net Profit Margin (TTM)33.53%8.75%
Operating Profit Margin (TTM)54.67%6.27%
Gross Profit Margin (TTM)16.67%62.61%

Financial Strength

Current Ratio (MRQ)

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.

TLN

1.84

Independent Power and Renewable Electricity Producers Industry

Max
1.74
Q3
1.21
Median
0.86
Q1
0.62
Min
0.25

TLN’s Current Ratio of 1.84 is exceptionally high, placing it well outside the typical range for the Independent Power and Renewable Electricity Producers industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

SBS vs. TLN: A comparison of their Current Ratio (MRQ) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Debt-to-Equity Ratio (MRQ)

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.

TLN

2.46

Independent Power and Renewable Electricity Producers Industry

Max
3.93
Q3
2.66
Median
1.75
Q1
1.05
Min
0.22

TLN’s Debt-to-Equity Ratio of 2.46 is typical for the Independent Power and Renewable Electricity Producers industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

SBS vs. TLN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Interest Coverage Ratio (TTM)

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.

TLN

28.78

Independent Power and Renewable Electricity Producers Industry

Max
10.03
Q3
7.41
Median
2.59
Q1
1.32
Min
-1.62

With an Interest Coverage Ratio of 28.78, TLN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Independent Power and Renewable Electricity Producers industry. This stems from either robust earnings or a conservative debt load.

SBS vs. TLN: A comparison of their Interest Coverage Ratio (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Financial Strength at a Glance

SymbolSBSTLN
Current Ratio (MRQ)1.091.84
Quick Ratio (MRQ)1.081.34
Debt-to-Equity Ratio (MRQ)0.722.46
Interest Coverage Ratio (TTM)17.2628.78

Growth

Revenue Growth

SBS vs. TLN: 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

SBS vs. TLN: 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)

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.

TLN

0.00%

Independent Power and Renewable Electricity Producers Industry

Max
8.02%
Q3
5.65%
Median
4.08%
Q1
2.47%
Min
0.00%

TLN currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

SBS vs. TLN: A comparison of their Dividend Yield (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Dividend Payout Ratio (TTM)

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.

TLN

0.00%

Independent Power and Renewable Electricity Producers Industry

Max
125.56%
Q3
90.24%
Median
50.41%
Q1
17.76%
Min
0.00%

TLN has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

SBS vs. TLN: A comparison of their Dividend Payout Ratio (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Dividend at a Glance

SymbolSBSTLN
Dividend Yield (TTM)1.18%0.00%
Dividend Payout Ratio (TTM)12.69%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

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.

TLN

87.97

Independent Power and Renewable Electricity Producers Industry

Max
51.94
Q3
27.00
Median
10.10
Q1
7.02
Min
4.18

At 87.97, TLN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Independent Power and Renewable Electricity Producers industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

SBS vs. TLN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Price-to-Sales Ratio (TTM)

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.

TLN

7.70

Independent Power and Renewable Electricity Producers Industry

Max
6.94
Q3
3.56
Median
2.46
Q1
0.86
Min
0.39

With a P/S Ratio of 7.70, TLN trades at a valuation that eclipses even the highest in the Independent Power and Renewable Electricity Producers industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

SBS vs. TLN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Price-to-Book Ratio (MRQ)

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.

TLN

10.62

Independent Power and Renewable Electricity Producers Industry

Max
3.49
Q3
1.92
Median
1.33
Q1
0.81
Min
0.35

At 10.62, TLN’s P/B Ratio is at an extreme premium to the Independent Power and Renewable Electricity Producers industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

SBS vs. TLN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Water Utilities and Independent Power and Renewable Electricity Producers industry benchmarks.

Valuation at a Glance

SymbolSBSTLN
Price-to-Earnings Ratio (TTM)7.6987.97
Price-to-Sales Ratio (TTM)2.587.70
Price-to-Book Ratio (MRQ)1.8210.62
Price-to-Free Cash Flow Ratio (TTM)39.1089.41