Financial Review: Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) and Pure Cycle (NASDAQ:PCYO)

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

Valuation and Earnings

This table compares Pure Cycle 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
Pure Cycle	$33.73 million	7.65	$13.11 million	$0.61	17.54
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 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pure Cycle	0	1	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 Pure Cycle.

Profitability

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

Institutional and Insider Ownership

51.4% of Pure Cycle 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. 6.1% of Pure Cycle 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.

Volatility & Risk

Pure Cycle has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.

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 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.

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.