WallStSmart

H2O America (HTO)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 195% more annual revenue ($2.40B vs $816.28M). HTO leads profitability with a 12.9% profit margin vs -5.7%. HTO appears more attractively valued with a PEG of 2.51. HTO earns a higher WallStSmart Score of 57/100 (C).

HTO

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 6.0Quality: 5.0

TAC

Avoid

31

out of 100

Grade: F

Growth: 2.0Profit: 3.5Value: 5.7Quality: 3.3
Piotroski: 2/9Altman Z: -0.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTOUndervalued (+32.6%)

Margin of Safety

+32.6%

Fair Value

$77.11

Current Price

$56.73

$20.38 discount

UndervaluedFair: $77.11Overvalued
TACUndervalued (+38.3%)

Margin of Safety

+38.3%

Fair Value

$21.96

Current Price

$12.48

$9.48 discount

UndervaluedFair: $21.96Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

HTO4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

PEG RatioValuation
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-49.23M2/10

Negative free cash flow — burning cash

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.2x4/10

Trading at 11.2x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
6.982/10

Expensive relative to growth rate

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : HTO

The primary concerns for HTO are EPS Growth, Return on Equity, PEG Ratio.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

HTO profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.

TAC carries more volatility with a beta of 0.46 — expect wider price swings.

HTO is growing revenue faster at 9.4% — sustainability is the question.

TAC generates stronger free cash flow (147M), providing more financial flexibility.

Bottom Line

HTO scores higher overall (57/100 vs 31/100). 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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

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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