Comparing SJW Group (SJW) & Companhia de Saneamento Basico (SBS)

SJW Group (NYSE: SJW) and Companhia de Saneamento Basico (NYSE:SBS) are both utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Dividends

How to Become a New Pot Stock Millionaire

SJW Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.1%. Companhia de Saneamento Basico pays an annual dividend of $0.29 per share and has a dividend yield of 2.9%. SJW Group pays out 49.6% of its earnings in the form of a dividend. Companhia de Saneamento Basico pays out 25.0% 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. SJW Group has raised its dividend for 50 consecutive years. Companhia de Saneamento Basico is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

SJW Group has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Companhia de Saneamento Basico has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for SJW Group and Companhia de Saneamento Basico, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SJW Group 0 0 1 0 3.00
Companhia de Saneamento Basico 1 3 1 0 2.00

Institutional & Insider Ownership

55.1% of SJW Group shares are held by institutional investors. Comparatively, 16.2% of Companhia de Saneamento Basico shares are held by institutional investors. 17.2% of SJW Group shares are held by insiders. Comparatively, 1.0% of Companhia de Saneamento Basico 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 SJW Group and Companhia de Saneamento Basico’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SJW Group $389.23 million 2.81 $59.20 million $2.26 23.50
Companhia de Saneamento Basico $4.58 billion 1.50 $789.53 million $1.16 8.66

Companhia de Saneamento Basico has higher revenue and earnings than SJW Group. Companhia de Saneamento Basico is trading at a lower price-to-earnings ratio than SJW Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SJW Group and Companhia de Saneamento Basico’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SJW Group 15.21% 10.57% 3.19%
Companhia de Saneamento Basico 17.29% 14.98% 6.67%

Summary

Companhia de Saneamento Basico beats SJW Group on 8 of the 15 factors compared between the two stocks.

About SJW Group

SJW Group, through its subsidiaries, provides water utility services in the United States. It engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. The company also provides non-tariffed services, including water system operations, maintenance agreements, and antenna site leases. Its water supply consists of groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District. The company offers water service to approximately 230,000 connections that serve approximately 1 million people residing in portions of the cities of San Jose and Cupertino, as well as in the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos; and adjacent unincorporated territories in the County of Santa Clara in the State of California. In addition, it provides water service to approximately 14,000 connections, which serve 42,000 people in a service area comprising 244 square miles in the region between San Antonio and Austin, Texas. Further, the company, through its subsidiary, SJW Land Company, owns undeveloped land in Tennessee; and owns and operates commercial buildings in Tennessee. The company was formerly known as SJW Corp. and changed its name to SJW Group in November 2016. SJW Group was founded in 1866 and is headquartered in San Jose, California.

About Companhia de Saneamento Basico

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.

Receive News & Ratings for SJW Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SJW Group and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply