WallStSmart

TransAlta Corp (TAC)vsTXNM Energy, Inc. (TXNM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 1% more annual revenue ($2.27B vs $2.23B). TXNM leads profitability with a 8.8% profit margin vs -1.0%. TXNM appears more attractively valued with a PEG of 2.55. TXNM earns a higher WallStSmart Score of 63/100 (C+).

TAC

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.05

TXNM

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 3.7Quality: 6.5
Piotroski: 3/9Altman Z: 3.29

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Strong operational efficiency at 33.3%

TXNM5 strengths · Avg: 9.0/10
EPS GrowthGrowth
190.9%10/10

Earnings expanding 190.9% YoY

Altman Z-ScoreHealth
3.2910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

Areas to Watch

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%

TXNM4 concerns · Avg: 3.0/10
P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : TAC

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

Bull Case : TXNM

The strongest argument for TXNM centers on EPS Growth, Altman Z-Score, Debt/Equity.

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.

Bear Case : TXNM

The primary concerns for TXNM are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

TAC profiles as a turnaround stock while TXNM is a value 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

TXNM scores higher overall (63/100 vs 43/100). Both earn "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.

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.

TXNM Energy, Inc.

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.

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