WallStSmart

Atmos Energy Corporation (ATO)vsBlack Hills Corporation (BKH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Atmos Energy Corporation generates 114% more annual revenue ($4.88B vs $2.29B). ATO leads profitability with a 27.6% profit margin vs 12.6%. ATO appears more attractively valued with a PEG of 2.16. ATO earns a higher WallStSmart Score of 62/100 (C+).

ATO

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 5.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.10

BKH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 6.5Value: 5.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ATO.

BKHUndervalued (+15.5%)

Margin of Safety

+15.5%

Fair Value

$85.94

Current Price

$73.44

$12.50 discount

UndervaluedFair: $85.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATO3 strengths · Avg: 9.0/10
Operating MarginProfitability
39.3%10/10

Strong operational efficiency at 39.3%

Profit MarginProfitability
27.6%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

BKH2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

Areas to Watch

ATO4 concerns · Avg: 3.3/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.6%4/10

0.6% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-280.10M2/10

Negative free cash flow — burning cash

BKH4 concerns · Avg: 2.3/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Revenue GrowthGrowth
-3.0%2/10

Revenue declined 3.0%

EPS GrowthGrowth
-7.5%2/10

Earnings declined 7.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : ATO

The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.6% and operating margin at 39.3%.

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin.

Bear Case : ATO

The primary concerns for ATO are PEG Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : BKH

The primary concerns for BKH are Return on Equity, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

ATO profiles as a value stock while BKH is a declining play — different risk/reward profiles.

BKH carries more volatility with a beta of 0.72 — expect wider price swings.

ATO is growing revenue faster at 0.6% — sustainability is the question.

BKH generates stronger free cash flow (-91M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (62/100 vs 51/100), backed by strong 27.6% margins. BKH offers better value entry with a 15.5% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Atmos Energy Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States' largest natural-gas-only distributors.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

Want to dig deeper into these stocks?