American Water Works (AWK)vsTransAlta Corp (TAC)
AWK
American Water Works
$137.69
-1.54%
UTILITIES · Cap: $27.90B
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 133% more annual revenue ($5.28B vs $2.27B). AWK leads profitability with a 21.3% profit margin vs -1.0%. AWK appears more attractively valued with a PEG of 2.49. AWK earns a higher WallStSmart Score of 64/100 (C+).
AWK
Buy64
out of 100
Grade: C+
TAC
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$101.07
Current Price
$137.69
$36.62 premium
Intrinsic value data unavailable for TAC.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 33.3%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 40.7%.
Bull Case : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
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.
Key Dynamics to Monitor
AWK profiles as a mature stock while TAC is a turnaround play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.58 — 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
AWK scores higher overall (64/100 vs 43/100), backed by strong 21.3% 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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.
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