Head to Head Survey: Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) vs. Guangdong Investment (OTCMKTS:GGDVY)

Guangdong Investment (OTCMKTS:GGDVYGet Free Report) and Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBSGet Free Report) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Institutional and Insider Ownership

0.0% of Guangdong Investment shares are held by institutional investors. Comparatively, 10.6% of Companhia de Saneamento Básico do Estado de São Paulo – SABESP shares are held by institutional investors. 1.0% of Companhia de Saneamento Básico do Estado de São Paulo – SABESP shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Guangdong Investment pays an annual dividend of $10.76 per share and has a dividend yield of 47.7%. Companhia de Saneamento Básico do Estado de São Paulo – SABESP pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. Guangdong Investment pays out 30.1% of its earnings in the form of a dividend. Companhia de Saneamento Básico do Estado de São Paulo – SABESP pays out 26.7% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Guangdong Investment and Companhia de Saneamento Básico do Estado de São Paulo – SABESP, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guangdong Investment 0 0 0 0 N/A
Companhia de Saneamento Básico do Estado de São Paulo – SABESP 0 0 0 0 N/A

Guangdong Investment presently has a consensus target price of $7.25, indicating a potential downside of 67.86%. Given Guangdong Investment’s higher possible upside, analysts clearly believe Guangdong Investment is more favorable than Companhia de Saneamento Básico do Estado de São Paulo – SABESP.

Valuation and Earnings

This table compares Guangdong Investment and Companhia de Saneamento Básico do Estado de São Paulo – SABESP’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guangdong Investment N/A N/A N/A $35.70 0.63
Companhia de Saneamento Básico do Estado de São Paulo – SABESP $4.27 billion 2.69 $604.59 million $0.86 19.57

Companhia de Saneamento Básico do Estado de São Paulo – SABESP has higher revenue and earnings than Guangdong Investment. Guangdong Investment is trading at a lower price-to-earnings ratio than Companhia de Saneamento Básico do Estado de São Paulo – SABESP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Guangdong Investment and Companhia de Saneamento Básico do Estado de São Paulo – SABESP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guangdong Investment N/A N/A N/A
Companhia de Saneamento Básico do Estado de São Paulo – SABESP 12.31% 10.45% 5.16%

Summary

Companhia de Saneamento Básico do Estado de São Paulo – SABESP beats Guangdong Investment on 8 of the 11 factors compared between the two stocks.

About Guangdong Investment

(Get Free Report)

Guangdong Investment Limited, an investment holding company, engages in water resources, property investment and development, department store operation, hotel ownership, energy project operation and management, and road and bridge operation businesses. The company's Water Resources segment provides water distribution, sewage treatment, water pipeline installation and consultancy services, constructs water supply and sewage treatment infrastructure, and sells machineries in Mainland China and Hong Kong. Its Property Investment and Development segment invests in and rents various properties in Hong Kong and Mainland China; and develops and sells properties in Mainland China. This segment also provides property management services for various commercial properties. The company's Department Stores Operation segment operates department stores in Mainland China. Its Electric Power Generation segment operates coal-fired power plants that supply electricity and steam in the Guangdong province, Mainland China. The company's Hotel Operation and Management segment operate hotels and provides hotel management services to third parties in Hong Kong and Mainland China. Its Road and Bridge segment invests in various road and bridge projects, which engages in the toll road operation and road management in Mainland China. The company's Others segment provides treasury services in Hong Kong and Mainland China, as well as corporate and other related services. It also offers financing, marketing management, environmental engineering, and water technology development and consultation services. The company was formerly known as Union Globe Development Limited and changed its name to Guangdong Investment Limited in January 1987. The company was incorporated in 1973 and is based in Central, Hong Kong. Guangdong Investment Limited operates as a subsidiary of GDH Limited.

About Companhia de Saneamento Básico do Estado de São Paulo – SABESP

(Get Free Report)

Companhia de Saneamento Básico do Estado de São Paulo SABESP provides basic and environmental sanitation services in the São Paulo State, Brazil. The company supplies treated water and sewage services to residential, commercial, and industrial private customers, as well as public. As of December 31, 2022, it provided water services through 10.1 million water connections; and sewage services through 8.6 million sewage connections in 375 municipalities of the São Paulo State. The company was founded in 1954 and is headquartered in São Paulo, Brazil.

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