WallStSmart

Black Hills Corporation (BKH)vsNiSource Inc (NI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NiSource Inc generates 198% more annual revenue ($6.82B vs $2.29B). NI leads profitability with a 14.1% profit margin vs 12.6%. NI appears more attractively valued with a PEG of 2.66. NI earns a higher WallStSmart Score of 60/100 (C+).

BKH

Buy

51

out of 100

Grade: C-

Growth: 2.0Profit: 6.5Value: 5.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

NI

Buy

60

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 3.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BKHUndervalued (+15.5%)

Margin of Safety

+15.5%

Fair Value

$85.94

Current Price

$73.44

$12.50 discount

UndervaluedFair: $85.94Overvalued
NISignificantly Overvalued (-79.4%)

Margin of Safety

-79.4%

Fair Value

$24.89

Current Price

$47.03

$22.14 premium

UndervaluedFair: $24.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BKH2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.9%8/10

Strong operational efficiency at 25.9%

NI2 strengths · Avg: 9.0/10
Operating MarginProfitability
34.8%10/10

Strong operational efficiency at 34.8%

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

BKH4 concerns · Avg: 2.3/10
Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Revenue GrowthGrowth
-3.0%2/10

Revenue declined 3.0%

EPS GrowthGrowth
-7.5%2/10

Earnings declined 7.5%

NI3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

Expensive relative to growth rate

Free Cash FlowQuality
$-362.90M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.592/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, Operating Margin.

Bull Case : NI

The strongest argument for NI centers on Operating Margin, Price/Book.

Bear Case : BKH

The primary concerns for BKH are Return on Equity, PEG Ratio, Revenue Growth.

Bear Case : NI

The primary concerns for NI are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

BKH profiles as a declining stock while NI is a value play — different risk/reward profiles.

BKH carries more volatility with a beta of 0.72 — expect wider price swings.

NI is growing revenue faster at 8.2% — sustainability is the question.

BKH generates stronger free cash flow (-91M), providing more financial flexibility.

Bottom Line

NI scores higher overall (60/100 vs 51/100). BKH offers better value entry with a 15.5% 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.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

NiSource Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

NiSource Inc. is one of the largest fully regulated utility companies in the United States. The company is based in Merrillville, Indiana.

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