WallStSmart

CMS Energy Corporation (CMS)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CMS Energy Corporation generates 289% more annual revenue ($8.81B vs $2.27B). CMS leads profitability with a 11.6% profit margin vs -1.0%. CMS appears more attractively valued with a PEG of 2.36. CMS earns a higher WallStSmart Score of 48/100 (D+).

CMS

Hold

48

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.65

TAC

Hold

43

out of 100

Grade: D

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMS1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

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

Strong operational efficiency at 33.3%

Areas to Watch

CMS4 concerns · Avg: 2.8/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Debt/EquityHealth
1.973/10

Elevated debt levels

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

EPS GrowthGrowth
-43.9%2/10

Earnings declined 43.9%

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 : CMS

The strongest argument for CMS centers on Price/Book.

Bull Case : TAC

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

Bear Case : CMS

The primary concerns for CMS are PEG Ratio, Debt/Equity, Revenue Growth. Debt-to-equity of 1.97 is elevated, increasing financial risk.

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

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

TAC carries more volatility with a beta of 0.46 — 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

CMS scores higher overall (48/100 vs 43/100). Both earn "Hold" 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.

CMS Energy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.

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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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