WallStSmart

Atmos Energy Corporation (ATO)vsBlack Hills Corporation (BKH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Atmos Energy Corporation generates 111% more annual revenue ($4.87B vs $2.31B). ATO leads profitability with a 25.7% profit margin vs 12.6%. ATO appears more attractively valued with a PEG of 2.16. ATO earns a higher WallStSmart Score of 64/100 (C+).

ATO

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 8.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.10

BKH

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATOOvervalued (-5.2%)

Margin of Safety

-5.2%

Fair Value

$167.29

Current Price

$181.55

$14.26 premium

UndervaluedFair: $167.29Overvalued
BKHSignificantly Overvalued (-120.3%)

Margin of Safety

-120.3%

Fair Value

$32.96

Current Price

$68.85

$35.89 premium

UndervaluedFair: $32.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATO3 strengths · Avg: 9.0/10
Operating MarginProfitability
38.9%10/10

Strong operational efficiency at 38.9%

Profit MarginProfitability
25.7%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

BKH3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

Areas to Watch

ATO4 concerns · Avg: 2.8/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-725.29M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.102/10

Distress zone — elevated risk

BKH4 concerns · Avg: 3.0/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

EPS GrowthGrowth
0.9%4/10

0.9% earnings growth

Free Cash FlowQuality
$-101.50M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ATO

The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 25.7% and operating margin at 38.9%. Revenue growth of 14.2% demonstrates continued momentum.

Bull Case : BKH

The strongest argument for BKH centers on Price/Book, P/E Ratio, Operating Margin.

Bear Case : ATO

The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : BKH

The primary concerns for BKH are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ATO profiles as a mature stock while BKH is a value play — different risk/reward profiles.

BKH carries more volatility with a beta of 0.70 — expect wider price swings.

ATO is growing revenue faster at 14.2% — sustainability is the question.

BKH generates stronger free cash flow (-102M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (64/100 vs 57/100), backed by strong 25.7% margins and 14.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Atmos Energy Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States' largest natural-gas-only distributors.

Black Hills Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Black Hills Corporation is a natural gas and electric utility company in the United States. The company is headquartered in Rapid City, South Dakota.

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