WallStSmart

Atmos Energy Corporation (ATO)vsNorthwest Natural Gas Co (NWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Atmos Energy Corporation generates 280% more annual revenue ($4.88B vs $1.29B). ATO leads profitability with a 27.6% profit margin vs 9.6%. ATO appears more attractively valued with a PEG of 2.09. ATO earns a higher WallStSmart Score of 64/100 (C+).

ATO

Buy

64

out of 100

Grade: C+

Growth: 4.7Profit: 8.0Value: 5.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.10

NWN

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ATO.

NWNUndervalued (+17.3%)

Margin of Safety

+17.3%

Fair Value

$59.03

Current Price

$49.73

$9.30 discount

UndervaluedFair: $59.03Overvalued

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

NWN3 strengths · Avg: 9.3/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Areas to Watch

ATO4 concerns · Avg: 3.3/10
PEG RatioValuation
2.094/10

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

NWN4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.542/10

Expensive relative to growth rate

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 : NWN

The strongest argument for NWN centers on Price/Book, Operating Margin, P/E Ratio.

Bear Case : ATO

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

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

ATO carries more volatility with a beta of 0.60 — expect wider price swings.

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

NWN generates stronger free cash flow (2M), providing more financial flexibility.

Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ATO scores higher overall (64/100 vs 58/100), backed by strong 27.6% margins. NWN offers better value entry with a 17.3% 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.

Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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