TransAlta Corp (TAC)vsXcel Energy Inc (XEL)
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
XEL
Xcel Energy Inc
$75.50
+0.12%
UTILITIES · Cap: $48.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Xcel Energy Inc generates 545% more annual revenue ($14.62B vs $2.27B). XEL leads profitability with a 15.3% profit margin vs -1.0%. XEL appears more attractively valued with a PEG of 1.90. XEL earns a higher WallStSmart Score of 65/100 (C+).
TAC
Hold43
out of 100
Grade: D
XEL
Buy65
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.3%
Reasonable price relative to book value
Strong operational efficiency at 22.7%
Earnings expanding 24.0% YoY
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Revenue declined 5.1%
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 : XEL
The strongest argument for XEL centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 15.3% and operating margin at 22.7%.
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 : XEL
The primary concerns for XEL are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Key Dynamics to Monitor
TAC profiles as a turnaround stock while XEL is a declining 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
XEL scores higher overall (65/100 vs 43/100), backed by strong 15.3% 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.
Xcel Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Xcel Energy Inc. is a utility holding company based in Minneapolis, Minnesota, serving more than 3.7 million electric customers and 2.1 million natural gas customers in Minnesota, Michigan, Wisconsin, North Dakota, South Dakota, Colorado, Texas, and New Mexico as of 2019. It consists of four operating subsidiaries: Northern States Power-Minnesota, Northern States Power-Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Co.
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