Atmos Energy Corporation (ATO)vsSouthwest Gas Holdings Inc (SWX)
ATO
Atmos Energy Corporation
$181.57
+0.30%
UTILITIES · Cap: $29.86B
SWX
Southwest Gas Holdings Inc
$86.35
+0.61%
UTILITIES · Cap: $6.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Atmos Energy Corporation generates 151% more annual revenue ($4.87B vs $1.94B). ATO leads profitability with a 25.7% profit margin vs 22.7%. SWX appears more attractively valued with a PEG of 2.08. ATO earns a higher WallStSmart Score of 64/100 (C+).
ATO
Buy64
out of 100
Grade: C+
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.0%
Fair Value
$167.51
Current Price
$181.57
$14.06 premium
Margin of Safety
-289.0%
Fair Value
$22.10
Current Price
$86.35
$64.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 38.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
Comparative Analysis Report
WallStSmart ResearchBull 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 : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
ATO profiles as a mature stock while SWX is a declining play — different risk/reward profiles.
ATO carries more volatility with a beta of 0.70 — expect wider price swings.
ATO is growing revenue faster at 14.2% — sustainability is the question.
SWX generates stronger free cash flow (-503M), providing more financial flexibility.
Bottom Line
ATO scores higher overall (64/100 vs 57/100), 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.
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.
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