Consolidated Water (NASDAQ:CWCO – Get Free Report) and Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS – Get Free Report) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.
Insider and Institutional Ownership
55.2% of Consolidated Water shares are owned by institutional investors. Comparatively, 10.6% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by institutional investors. 5.8% of Consolidated Water shares are owned by insiders. Comparatively, 1.0% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Consolidated Water has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Consolidated Water and Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Consolidated Water | 12.66% | 7.23% | 6.36% |
| Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp | 23.93% | 14.03% | 5.59% |
Valuation & Earnings
This table compares Consolidated Water and Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Consolidated Water | $132.07 million | 3.27 | $18.34 million | $0.83 | 32.48 |
| Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp | $6.82 billion | 2.34 | $1.52 billion | $0.36 | 12.58 |
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has higher revenue and earnings than Consolidated Water. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp is trading at a lower price-to-earnings ratio than Consolidated Water, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Consolidated Water and Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Consolidated Water | 0 | 2 | 0 | 0 | 2.00 |
| Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp | 0 | 1 | 2 | 0 | 2.67 |
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a consensus target price of $183.00, indicating a potential upside of 3,939.74%. Given Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp’s stronger consensus rating and higher possible upside, analysts clearly believe Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp is more favorable than Consolidated Water.
Dividends
Consolidated Water pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%. Consolidated Water pays out 67.5% of its earnings in the form of a dividend. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays out 27.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Consolidated Water has increased its dividend for 2 consecutive years. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp beats Consolidated Water on 10 of the 17 factors compared between the two stocks.
About Consolidated Water
Consolidated Water Co. Ltd., together with its subsidiaries, designs, constructs, manages, and operates water production and water treatment plants primarily in the Cayman Islands, the Bahamas, and the United States. The company operates through four segments: Retail, Bulk, Services, and Manufacturing. The company produces potable water from seawater utilizing reverse osmosis technology and supply water to end-users, including residential, commercial, and government customers, as well as government-owned distributors. It offers design, engineering, construction, procurement, and management services for desalination projects and water treatment plants, as well as management and engineering services relating to municipal water distribution and treatment. In addition, the company manufactures and services a range of water-related products, including reverse osmosis desalination equipment, membrane separation equipment, filtration equipment, piping systems, vessels, and custom fabricated components; and provides design, engineering, consulting, management, inspection, training, and equipment maintenance services for commercial, municipal, and industrial water production, supply, and treatment, as well as desalination and wastewater treatment. Consolidated Water Co. Ltd. was incorporated in 1973 and is headquartered in Grand Cayman, the Cayman Islands.
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.
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