Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) vs. Pure Cycle (NASDAQ:PCYO) Head-To-Head Review

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp	0	1	2	0	2.67
Pure Cycle	0	1	0	0	2.00

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp currently has a consensus target price of $183.00, indicating a potential upside of 3,926.40%. Given Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp is more favorable than Pure Cycle.

Profitability

This table compares Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Pure Cycle’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	23.93%	14.03%	5.59%
Pure Cycle	43.66%	9.98%	8.75%

Institutional and Insider Ownership

10.6% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by institutional investors. Comparatively, 51.4% of Pure Cycle shares are owned by institutional investors. 1.0% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by insiders. Comparatively, 6.1% of Pure Cycle shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500. Comparatively, Pure Cycle has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp	$6.82 billion	2.34	$1.52 billion	$0.36	12.62
Pure Cycle	$26.09 million	9.92	$13.11 million	$0.61	17.60

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

Summary

Pure Cycle beats Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp on 8 of the 14 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 engages in the provision of water and sewage service. It also offers advisory services on the rational use of water, planning and commercial, and financial and operational management. The company was founded on September 6, 1973 and is headquartered in São Paulo, Brazil.

About Pure Cycle

Pure Cycle Corporation designs, constructs, operates, and maintains water and wastewater systems in the Denver metropolitan area and Colorado Front Range in the United States. It operates in two segments, Wholesale Water and Wastewater Services, and Land Development. The company engages in the wholesale water production, storage, treatment, and distribution systems; wastewater collection and treatment systems; development of 930-acre master-planned community; oil and gas leasing business; and construction and leasing of single-family homes. It serves domestic, commercial, and industrial customers in the Eastern Denver metropolitan region. Pure Cycle Corporation was incorporated in 1976 and is based in Watkins, Colorado.