Atmos Energy Corporation (ATO)vsEssential Utilities Inc (WTRG)
ATO
Atmos Energy Corporation
$189.98
+2.30%
UTILITIES · Cap: $30.72B
WTRG
Essential Utilities Inc
$39.49
-0.35%
UTILITIES · Cap: $11.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Atmos Energy Corporation generates 97% more annual revenue ($4.87B vs $2.47B). ATO leads profitability with a 25.7% profit margin vs 24.9%. ATO appears more attractively valued with a PEG of 2.23. ATO earns a higher WallStSmart Score of 64/100 (C+).
ATO
Buy64
out of 100
Grade: C+
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ATO.
Margin of Safety
+47.6%
Fair Value
$71.49
Current Price
$39.49
$32.00 discount
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 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
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 : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
ATO profiles as a mature stock while WTRG is a growth play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.77 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
WTRG generates stronger free cash flow (-241M), providing more financial flexibility.
Bottom Line
ATO scores higher overall (64/100 vs 60/100), backed by strong 25.7% margins and 14.2% revenue growth. WTRG offers better value entry with a 47.6% 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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