WallStSmart

Edison International (EIX)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Edison International generates 757% more annual revenue ($19.42B vs $2.27B). EIX leads profitability with a 19.3% profit margin vs -1.0%. EIX appears more attractively valued with a PEG of 2.52. EIX earns a higher WallStSmart Score of 71/100 (B).

EIX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.68

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

EIXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$59.45

Current Price

$56.00

$3.45 premium

UndervaluedFair: $59.45Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EIX5 strengths · Avg: 9.4/10
P/E RatioValuation
6.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
55.1%10/10

Earnings expanding 55.1% YoY

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

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

Strong operational efficiency at 33.3%

Areas to Watch

EIX4 concerns · Avg: 2.0/10
PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

Free Cash FlowQuality
$-576.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

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 : EIX

The strongest argument for EIX centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.3% and operating margin at 26.9%.

Bull Case : TAC

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

Bear Case : EIX

The primary concerns for EIX are PEG Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.48 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

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

EIX carries more volatility with a beta of 0.61 — 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

EIX scores higher overall (71/100 vs 43/100), backed by strong 19.3% margins. 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.

Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

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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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