Southwest Gas Holdings Inc (SWX)vsTransAlta Corp (TAC)
SWX
Southwest Gas Holdings Inc
$88.72
+1.78%
UTILITIES · Cap: $6.44B
TAC
TransAlta Corp
$12.68
-2.16%
UTILITIES · Cap: $4.23B
Smart Verdict
WallStSmart Research — data-driven comparison
TransAlta Corp generates 24% more annual revenue ($2.21B vs $1.78B). SWX leads profitability with a 26.1% profit margin vs -7.7%. SWX appears more attractively valued with a PEG of 2.18. SWX earns a higher WallStSmart Score of 65/100 (B-).
SWX
Strong Buy65
out of 100
Grade: B-
TAC
Avoid33
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 37.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 20.9% YoY
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Moderate valuation
Revenue declined 21.6%
Negative free cash flow — burning cash
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.
Bull Case : TAC
TAC has a balanced fundamental profile.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Revenue Growth.
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
SWX profiles as a declining stock while TAC is a turnaround play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.58 — expect wider price swings.
SWX is growing revenue faster at -21.6% — sustainability is the question.
TAC generates stronger free cash flow (93M), providing more financial flexibility.
Bottom Line
SWX scores higher overall (65/100 vs 33/100), backed by strong 26.1% margins. Both earn "Strong 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.
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.
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