WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 225% more annual revenue ($2.27B vs $697.48M). AWR leads profitability with a 20.5% profit margin vs -1.0%. AWR appears more attractively valued with a PEG of 2.98. AWR earns a higher WallStSmart Score of 66/100 (B-).

AWR

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.23

TAC

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWROvervalued (-9.1%)

Margin of Safety

-9.1%

Fair Value

$65.05

Current Price

$86.48

$21.43 premium

UndervaluedFair: $65.05Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWR3 strengths · Avg: 9.0/10
Operating MarginProfitability
35.8%10/10

Strong operational efficiency at 35.8%

Profit MarginProfitability
20.5%9/10

Keeps 21 of every $100 in revenue as profit

EPS GrowthGrowth
25.8%8/10

Earnings expanding 25.8% YoY

TAC1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.3%10/10

Strong operational efficiency at 33.3%

Areas to Watch

AWR3 concerns · Avg: 2.0/10
PEG RatioValuation
2.982/10

Expensive relative to growth rate

Free Cash FlowQuality
$-3.60M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.232/10

Distress zone — elevated risk

TAC4 concerns · Avg: 2.3/10
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

EPS GrowthGrowth
-71.6%2/10

Earnings declined 71.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWR

The strongest argument for AWR centers on Operating Margin, Profit Margin, EPS Growth. Profitability is solid with margins at 20.5% and operating margin at 35.8%. Revenue growth of 11.2% demonstrates continued momentum.

Bull Case : TAC

The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : AWR

The primary concerns for AWR are PEG Ratio, Free Cash Flow, Altman Z-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

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

AWR carries more volatility with a beta of 0.56 — 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

AWR scores higher overall (66/100 vs 43/100), backed by strong 20.5% margins and 11.2% revenue growth. 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.

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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