WallStSmart

Atmos Energy Corporation (ATO)vsNiSource Inc (NI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NiSource Inc generates 36% more annual revenue ($6.64B vs $4.87B). ATO leads profitability with a 25.7% profit margin vs 14.0%. ATO appears more attractively valued with a PEG of 2.16. ATO earns a higher WallStSmart Score of 64/100 (C+).

ATO

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 8.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.10

NI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 8.7Quality: 3.8
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATOOvervalued (-5.0%)

Margin of Safety

-5.0%

Fair Value

$167.51

Current Price

$181.57

$14.06 premium

UndervaluedFair: $167.51Overvalued
NIUndervalued (+6.7%)

Margin of Safety

+6.7%

Fair Value

$47.89

Current Price

$45.68

$2.21 discount

UndervaluedFair: $47.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATO3 strengths · Avg: 9.0/10
Operating MarginProfitability
38.9%10/10

Strong operational efficiency at 38.9%

Profit MarginProfitability
25.7%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

NI3 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.0%8/10

Strong operational efficiency at 27.0%

Revenue GrowthGrowth
19.8%8/10

19.8% revenue growth

Areas to Watch

ATO4 concerns · Avg: 2.8/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-725.29M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.102/10

Distress zone — elevated risk

NI3 concerns · Avg: 2.7/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

Free Cash FlowQuality
$-133.70M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.592/10

Distress zone — elevated risk

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 25.7% and operating margin at 38.9%. Revenue growth of 14.2% demonstrates continued momentum.

Bull Case : NI

The strongest argument for NI centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 19.8% demonstrates continued momentum.

Bear Case : ATO

The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : NI

The primary concerns for NI are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

ATO profiles as a mature stock while NI is a growth play — different risk/reward profiles.

ATO carries more volatility with a beta of 0.70 — expect wider price swings.

NI is growing revenue faster at 19.8% — sustainability is the question.

NI generates stronger free cash flow (-134M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (64/100 vs 62/100), backed by strong 25.7% margins and 14.2% revenue growth. 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.

NiSource Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

NiSource Inc. is one of the largest fully regulated utility companies in the United States. The company is based in Merrillville, Indiana.

Want to dig deeper into these stocks?