WallStSmart

American States Water Company (AWR)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 265% more annual revenue ($2.40B vs $658.07M). AWR leads profitability with a 19.8% profit margin vs -5.7%. AWR appears more attractively valued with a PEG of 2.71. AWR earns a higher WallStSmart Score of 56/100 (C).

AWR

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.17

TAC

Avoid

31

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 5.7Quality: 3.3
Piotroski: 2/9Altman Z: -0.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWRFair Value (-3.5%)

Margin of Safety

-3.5%

Fair Value

$68.57

Current Price

$76.07

$7.50 premium

UndervaluedFair: $68.57Overvalued
TACUndervalued (+38.3%)

Margin of Safety

+38.3%

Fair Value

$21.96

Current Price

$12.48

$9.48 discount

UndervaluedFair: $21.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR2 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.8%8/10

Strong operational efficiency at 28.8%

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AWR4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.712/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.2%2/10

Earnings declined 1.2%

Free Cash FlowQuality
$-35.98M2/10

Negative free cash flow — burning cash

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.2x4/10

Trading at 11.2x 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
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.8% and operating margin at 28.8%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : AWR

The primary concerns for AWR are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AWR profiles as a mature stock while TAC is a turnaround play — different risk/reward profiles.

AWR carries more volatility with a beta of 0.65 — expect wider price swings.

AWR is growing revenue faster at 14.8% — sustainability is the question.

TAC generates stronger free cash flow (147M), providing more financial flexibility.

Bottom Line

AWR scores higher overall (56/100 vs 31/100), backed by strong 19.8% margins and 14.8% revenue growth. TAC offers better value entry with a 38.3% margin of safety. 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.

American States Water Company

UTILITIES · UTILITIES - REGULATED WATER · USA

American States Water Company provides water and electricity services to residential, commercial, industrial and other customers in the United States. The company is headquartered in San Dimas, California.

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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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