WallStSmart

TransAlta Corp (TAC)vsXcel Energy Inc (XEL)

VS

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

Hold

43

out of 100

Grade: D

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

XEL

Buy

65

out of 100

Grade: C+

Growth: 4.0Profit: 6.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.68

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%

XEL3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

EPS GrowthGrowth
24.0%8/10

Earnings expanding 24.0% YoY

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%

XEL4 concerns · Avg: 3.0/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Debt/EquityHealth
1.683/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-5.1%2/10

Revenue declined 5.1%

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 : 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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