WallStSmart

Atmos Energy Corporation (ATO)vsNorthwest Natural Gas Co (NWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Atmos Energy Corporation generates 278% more annual revenue ($4.87B vs $1.29B). ATO leads profitability with a 25.7% profit margin vs 8.8%. ATO appears more attractively valued with a PEG of 2.16. NWN 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

NWN

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.72
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
NWNUndervalued (+61.1%)

Margin of Safety

+61.1%

Fair Value

$125.65

Current Price

$52.47

$73.18 discount

UndervaluedFair: $125.65Overvalued

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

NWN3 strengths · Avg: 8.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

EPS GrowthGrowth
24.1%8/10

Earnings expanding 24.1% YoY

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

NWN4 concerns · Avg: 2.5/10
Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Debt/EquityHealth
1.763/10

Elevated debt levels

PEG RatioValuation
2.712/10

Expensive relative to growth rate

Free Cash FlowQuality
$-130.97M2/10

Negative free cash flow — burning cash

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 : NWN

The strongest argument for NWN centers on Price/Book, Operating Margin, EPS Growth.

Bear Case : ATO

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

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, PEG Ratio. Debt-to-equity of 1.76 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ATO 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.

NWN generates stronger free cash flow (-131M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (64/100 vs 64/100), backed by strong 25.7% margins and 14.2% revenue growth. NWN offers better value entry with a 61.1% margin of safety. 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.

Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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