Atmos Energy Corporation (ATO)vsSouthwest Gas Holdings Inc (SWX)
ATO
Atmos Energy Corporation
$182.13
+0.70%
UTILITIES · Cap: $30.40B
SWX
Southwest Gas Holdings Inc
$89.13
-0.91%
UTILITIES · Cap: $6.45B
Smart Verdict
WallStSmart Research — data-driven comparison
Atmos Energy Corporation generates 174% more annual revenue ($4.88B vs $1.78B). ATO leads profitability with a 27.6% profit margin vs 26.1%. ATO appears more attractively valued with a PEG of 2.16. SWX earns a higher WallStSmart Score of 65/100 (B-).
ATO
Buy62
out of 100
Grade: C+
SWX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ATO.
Margin of Safety
-29.1%
Fair Value
$66.62
Current Price
$89.13
$22.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 39.3%
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 37.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 20.9% YoY
Areas to Watch
Expensive relative to growth rate
0.6% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 21.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : ATO
The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.6% and operating margin at 39.3%.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
ATO profiles as a value stock while SWX is a declining play — different risk/reward profiles.
ATO carries more volatility with a beta of 0.65 — expect wider price swings.
ATO is growing revenue faster at 0.6% — sustainability is the question.
SWX generates stronger free cash flow (-47M), providing more financial flexibility.
Bottom Line
SWX scores higher overall (65/100 vs 62/100), backed by strong 26.1% margins. Both earn "Strong 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.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
Compare with Other UTILITIES - REGULATED GAS Stocks
Want to dig deeper into these stocks?