Comparing Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) & Veolia Environnement (OTCMKTS:VEOEY)

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp (NYSE:SBS) and Veolia Environnement (OTCMKTS:VEOEY) are both large-cap utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Veolia Environnement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp	28.70%	29.18%	14.03%
Veolia Environnement	N/A	N/A	N/A

Earnings and Valuation

This table compares Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Veolia Environnement”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp	$6.70 billion	1.99	$1.78 billion	$2.68	7.29
Veolia Environnement	$48.37 billion	0.51	$1.19 billion	N/A	N/A

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has higher earnings, but lower revenue than Veolia Environnement.

Analyst Ratings

This is a breakdown of current ratings and target prices for Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp and Veolia Environnement, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp	0	0	0	1	4.00
Veolia Environnement	1	0	0	1	2.50

Institutional and Insider Ownership

10.6% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by institutional investors. Comparatively, 0.2% of Veolia Environnement shares are owned by institutional investors. 1.0% of Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp shares are owned by company insiders. Comparatively, 1.0% of Veolia Environnement shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Veolia Environnement has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Dividends

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays an annual dividend of $0.38 per share and has a dividend yield of 1.9%. Veolia Environnement pays an annual dividend of $0.53 per share and has a dividend yield of 3.1%. Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp pays out 14.2% of its earnings in the form of a dividend.

Summary

Companhia de saneamento Basico Do Estado De Sao Paulo – Sabesp beats Veolia Environnement on 7 of the 11 factors compared between the two stocks.

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.

About Veolia Environnement

Veolia Environnement SA designs and provides water, waste, and energy management solutions worldwide. It operates through France and Special Waste Europe; Europe excluding France; Rest of the World; Water Technologies; and Other segments. The company is involved in resource management; customer relationship management; drinking water treatment and distribution; wastewater treatment; design and construction of treatment and network infrastructure; and sale of water treatment equipment, technologies, and facilities. It provides waste collection, product recovery and waste-to-energy processing, including sale of recycled products; dismantling and remediation; hazardous waste processing; urban cleaning; and industrial maintenance and cleaning services. In addition, the company engages in the operation and maintenance of heating and cooling networks; optimization of industrial utilities, such as steam generation, cooling, electricity, compressed air; installation and maintenance of production equipment; development of energy services to reduce energy consumption and CO2 emissions of buildings; integrated services for building management, and the production of electricity from biomass, as well as provides thermal and multi-technical services. It serves industrial and service sector companies, public authorities, and individuals. The company was formerly known as Vivendi Environnement and changed its name to Veolia Environnement SA in January 2003. Veolia Environnement SA was founded in 1853 and is headquartered in Paris, France.