CenterPoint Energy Inc (CNP)vsTransAlta Corp (TAC)
CNP
CenterPoint Energy Inc
$37.84
-0.37%
UTILITIES · Cap: $25.18B
TAC
TransAlta Corp
$11.93
-3.09%
UTILITIES · Cap: $3.89B
Smart Verdict
WallStSmart Research — data-driven comparison
CenterPoint Energy Inc generates 325% more annual revenue ($9.62B vs $2.27B). CNP leads profitability with a 11.6% profit margin vs -1.0%. CNP appears more attractively valued with a PEG of 1.67. CNP earns a higher WallStSmart Score of 66/100 (B-).
CNP
Strong Buy66
out of 100
Grade: B-
TAC
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-71.8%
Fair Value
$22.11
Current Price
$37.84
$15.73 premium
Intrinsic value data unavailable for TAC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 24.5%
Earnings expanding 23.3% YoY
Strong operational efficiency at 33.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : CNP
The strongest argument for CNP centers on Price/Book, Operating Margin, EPS Growth. Revenue growth of 10.7% 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 : CNP
The primary concerns for CNP are PEG Ratio, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 2.14 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
CNP profiles as a value 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
CNP scores higher overall (66/100 vs 43/100) and 10.7% 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.
CenterPoint Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
CenterPoint Energy, Inc. is an American Fortune 500 electric and natural gas utility serving several markets in the American states of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas.
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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