WallStSmart

Southwest Gas Holdings Inc (SWX)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 30% more annual revenue ($2.27B vs $1.74B). SWX leads profitability with a 31.4% profit margin vs -1.0%. SWX appears more attractively valued with a PEG of 1.86. SWX earns a higher WallStSmart Score of 65/100 (B-).

SWX

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.0Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.89

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

SWX4 strengths · Avg: 8.5/10
Profit MarginProfitability
31.4%10/10

Keeps 31 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

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

Strong operational efficiency at 33.3%

Areas to Watch

SWX4 concerns · Avg: 2.5/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.6%2/10

Revenue declined 9.6%

Free Cash FlowQuality
$-174.31M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.892/10

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 : SWX

The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.

Bull Case : TAC

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

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.

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

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

SWX carries more volatility with a beta of 0.56 — 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

SWX scores higher overall (65/100 vs 43/100), backed by strong 31.4% 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.

Southwest Gas Holdings Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.

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.

Want to dig deeper into these stocks?