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

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.

Institutional and Insider Ownership

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Pure Cycle Corporation $719,142.00 236.17 -$1.65 million ($0.07) -102.13
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp $4.62 billion 1.58 $1.55 billion $1.14 9.34

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.

Profitability

This table compares Pure Cycle Corporation 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
Pure Cycle Corporation -240.61% -2.39% -2.32%
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp 17.17% 16.39% 7.11%

Risk and Volatility

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

Analyst Ratings

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

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

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.

Pure Cycle Corporation Company Profile

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.

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp Company Profile

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.

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