WallStSmart

California Water Service Group (CWT)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 115% more annual revenue ($2.27B vs $1.05B). CWT leads profitability with a 12.6% profit margin vs -1.0%. CWT appears more attractively valued with a PEG of 2.22. CWT earns a higher WallStSmart Score of 67/100 (B-).

CWT

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.72

TAC

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+21.4%)

Margin of Safety

+21.4%

Fair Value

$56.20

Current Price

$48.22

$7.98 discount

UndervaluedFair: $56.20Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT4 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.2%8/10

Strong operational efficiency at 28.2%

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

EPS GrowthGrowth
31.4%8/10

Earnings expanding 31.4% YoY

TAC1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.3%10/10

Strong operational efficiency at 33.3%

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-83.38M2/10

Negative free cash flow — burning cash

TAC4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-12.1%2/10

ROE of -12.1% — below average capital efficiency

EPS GrowthGrowth
-71.6%2/10

Earnings declined 71.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : CWT

The strongest argument for CWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 16.5% demonstrates continued momentum.

Bull Case : TAC

The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on 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

CWT profiles as a growth stock while TAC is a turnaround play — different risk/reward profiles.

CWT carries more volatility with a beta of 0.49 — expect wider price swings.

CWT is growing revenue faster at 16.5% — sustainability is the question.

TAC generates stronger free cash flow (17M), providing more financial flexibility.

Bottom Line

CWT scores higher overall (67/100 vs 43/100) and 16.5% revenue growth. Both earn "Strong 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.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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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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