WallStSmart

TransAlta Corp (TAC)vsEssential Utilities Inc (WTRG)

VS

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

Hold

43

out of 100

Grade: D

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

WTRG

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for TAC.

WTRGUndervalued (+45.1%)

Margin of Safety

+45.1%

Fair Value

$68.22

Current Price

$41.07

$27.15 discount

UndervaluedFair: $68.22Overvalued

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%

WTRG3 strengths · Avg: 9.0/10
Operating MarginProfitability
35.4%10/10

Strong operational efficiency at 35.4%

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

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%

WTRG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.213/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : 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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