WallStSmart

MGE Energy Inc (MGEE)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 195% more annual revenue ($2.21B vs $750.39M). MGEE leads profitability with a 19.0% profit margin vs -7.7%. MGEE appears more attractively valued with a PEG of 4.12. MGEE earns a higher WallStSmart Score of 61/100 (C+).

MGEE

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.20

TAC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.19

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGEE2 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

MGEE4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.122/10

Expensive relative to growth rate

Free Cash FlowQuality
$-20.45M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.3x4/10

Trading at 11.3x book value

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

Comparative Analysis Report

WallStSmart Research

Bull Case : MGEE

The strongest argument for MGEE centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.0% and operating margin at 23.5%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : MGEE

The primary concerns for MGEE are Piotroski F-Score, PEG Ratio, Free Cash Flow.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

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

MGEE is growing revenue faster at 10.8% — sustainability is the question.

TAC generates stronger free cash flow (93M), providing more financial flexibility.

Bottom Line

MGEE scores higher overall (61/100 vs 33/100), backed by strong 19.0% margins and 10.8% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

MGE Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.

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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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