Atmos Energy Corporation (ATO)vsTransAlta Corp (TAC)
ATO
Atmos Energy Corporation
$163.19
-0.98%
UTILITIES · Cap: $28.40B
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Atmos Energy Corporation generates 117% more annual revenue ($4.92B vs $2.27B). ATO leads profitability with a 28.5% profit margin vs -1.0%. ATO appears more attractively valued with a PEG of 2.02. ATO earns a higher WallStSmart Score of 66/100 (B-).
ATO
Strong Buy66
out of 100
Grade: B-
TAC
Hold43
out of 100
Grade: D
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 37.2%
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 23.3% YoY
Strong operational efficiency at 33.3%
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
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 28.5% and operating margin at 37.2%.
Bull Case : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : TAC
The primary concerns for TAC are Piotroski F-Score, PEG Ratio, Return on Equity. Debt-to-equity of 2.38 is elevated, increasing financial risk.
Key Dynamics to Monitor
ATO profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.
ATO carries more volatility with a beta of 0.59 — expect wider price swings.
TAC is growing revenue faster at 12.5% — sustainability is the question.
TAC generates stronger free cash flow (17M), providing more financial flexibility.
Bottom Line
ATO scores higher overall (66/100 vs 43/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Hold" 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.
TransAlta Corp
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.
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