WallStSmart

Avista Corporation (AVA)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 15% more annual revenue ($2.21B vs $1.92B). AVA leads profitability with a 10.7% profit margin vs -7.7%. AVA appears more attractively valued with a PEG of 2.69. AVA earns a higher WallStSmart Score of 60/100 (C).

AVA

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 4.0Quality: 2.5
Piotroski: 1/9Altman Z: 0.77

TAC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVASignificantly Overvalued (-29.6%)

Margin of Safety

-29.6%

Fair Value

$32.19

Current Price

$42.42

$10.23 premium

UndervaluedFair: $32.19Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVA3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AVA4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.4%3/10

ROE of 7.4% — below average capital efficiency

Debt/EquityHealth
1.183/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.3x4/10

Trading at 11.3x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-12.1%2/10

ROE of -12.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AVA

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

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : AVA

The primary concerns for AVA are Return on Equity, Debt/Equity, Piotroski F-Score.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Key Dynamics to Monitor

AVA profiles as a declining stock while TAC is a turnaround play — different risk/reward profiles.

TAC carries more volatility with a beta of 0.49 — expect wider price swings.

AVA is growing revenue faster at -7.6% — sustainability is the question.

TAC generates stronger free cash flow (93M), providing more financial flexibility.

Bottom Line

AVA scores higher overall (60/100 vs 33/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Avista Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

Avista Corporation is a natural gas and electric utility company. The company is headquartered in Spokane, Washington.

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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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