WallStSmart

The AES Corporation (AES)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The AES Corporation generates 465% more annual revenue ($12.49B vs $2.21B). AES leads profitability with a 10.8% profit margin vs -7.7%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 71/100 (B).

AES

Strong Buy

71

out of 100

Grade: B

Growth: 6.0Profit: 7.0Value: 6.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.48

TAC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AESSignificantly Overvalued (-44.1%)

Margin of Safety

-44.1%

Fair Value

$11.41

Current Price

$14.67

$3.26 premium

UndervaluedFair: $11.41Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AES4 strengths · Avg: 9.5/10
P/E RatioValuation
7.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
951.0%10/10

Earnings expanding 951.0% YoY

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AES4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-565.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.482/10

Distress zone — elevated risk

Debt/EquityHealth
7.011/10

Elevated debt levels

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-12.1%2/10

ROE of -12.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AES

The strongest argument for AES centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : AES

The primary concerns for AES are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 7.01 is elevated, increasing financial risk.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Key Dynamics to Monitor

AES profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.

AES carries more volatility with a beta of 0.95 — expect wider price swings.

AES is growing revenue faster at 8.7% — sustainability is the question.

TAC generates stronger free cash flow (93M), providing more financial flexibility.

Bottom Line

AES scores higher overall (71/100 vs 33/100). Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The AES Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.

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TransAlta Corp

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.

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