American Water Works (AWK)vsTransAlta Corp (TAC)
AWK
American Water Works
$127.38
-0.81%
UTILITIES · Cap: $24.87B
TAC
TransAlta Corp
$12.48
0.00%
UTILITIES · Cap: $3.70B
Smart Verdict
WallStSmart Research — data-driven comparison
American Water Works generates 116% more annual revenue ($5.21B vs $2.40B). AWK leads profitability with a 21.2% profit margin vs -5.7%. AWK appears more attractively valued with a PEG of 2.30. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
TAC
Avoid31
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-10.7%
Fair Value
$111.72
Current Price
$127.38
$15.66 premium
Margin of Safety
+38.3%
Fair Value
$21.96
Current Price
$12.48
$9.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Earnings declined 4.8%
Negative free cash flow — burning cash
Trading at 11.2x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -9.6% — below average capital efficiency
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 21.2% and operating margin at 33.2%.
Bull Case : TAC
TAC has a balanced fundamental profile.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Piotroski F-Score, EPS Growth.
Bear Case : TAC
The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.
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 0.73 — expect wider price swings.
AWK is growing revenue faster at 5.7% — sustainability is the question.
TAC generates stronger free cash flow (147M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 31/100), backed by strong 21.2% margins. TAC offers better value entry with a 38.3% margin of safety. Both earn "Buy" and "Avoid" 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.
Compare with Other UTILITIES - REGULATED WATER Stocks
Want to dig deeper into these stocks?