WallStSmart

Atmos Energy Corporation (ATO)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Atmos Energy Corporation generates 183% more annual revenue ($4.92B vs $1.74B). SWX leads profitability with a 31.4% profit margin vs 28.5%. ATO appears more attractively valued with a PEG of 2.03. ATO earns a higher WallStSmart Score of 66/100 (B-).

ATO

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 8.0Value: 5.0Quality: 4.0
Piotroski: 2/9Altman Z: 1.10

SWX

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.89

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATO4 strengths · Avg: 8.8/10
Operating MarginProfitability
37.2%10/10

Strong operational efficiency at 37.2%

Profit MarginProfitability
28.5%9/10

Keeps 29 of every $100 in revenue as profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
23.3%8/10

Earnings expanding 23.3% YoY

SWX4 strengths · Avg: 8.5/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

ATO4 concerns · Avg: 3.3/10
PEG RatioValuation
2.034/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-399.43M2/10

Negative free cash flow — burning cash

SWX4 concerns · Avg: 2.5/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

Free Cash FlowQuality
$-174.31M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.892/10

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 28.5% and operating margin at 37.2%.

Bull Case : SWX

The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.

Bear Case : ATO

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

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.

Key Dynamics to Monitor

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

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

ATO is growing revenue faster at 4.8% — sustainability is the question.

SWX generates stronger free cash flow (-174M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (66/100 vs 63/100), backed by strong 28.5% margins. Both earn "Strong 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.

Southwest Gas Holdings Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.

Want to dig deeper into these stocks?