TransAlta Corp (TAC)vsEssential Utilities Inc (WTRG)
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
WTRG
Essential Utilities Inc
$41.07
-1.75%
UTILITIES · Cap: $11.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 13% more annual revenue ($2.57B vs $2.27B). WTRG leads profitability with a 21.6% profit margin vs -1.0%. WTRG appears more attractively valued with a PEG of 3.72. WTRG earns a higher WallStSmart Score of 56/100 (C).
TAC
Hold43
out of 100
Grade: D
WTRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for TAC.
Margin of Safety
+45.1%
Fair Value
$68.22
Current Price
$41.07
$27.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.3%
Strong operational efficiency at 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
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 : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
TAC profiles as a turnaround stock while WTRG is a value play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.63 — 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
WTRG scores higher overall (56/100 vs 43/100), backed by strong 21.6% margins. 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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