WallStSmart

MGE Energy Inc (MGEE)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TransAlta Corp generates 201% more annual revenue ($2.27B vs $752.13M). MGEE leads profitability with a 19.9% profit margin vs -1.0%. MGEE appears more attractively valued with a PEG of 4.12. MGEE earns a higher WallStSmart Score of 61/100 (C+).

MGEE

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.20

TAC

Hold

43

out of 100

Grade: D

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

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGEE3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

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

Strong operational efficiency at 33.3%

Areas to Watch

MGEE4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.122/10

Expensive relative to growth rate

Free Cash FlowQuality
$-41.63M2/10

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 : MGEE

The strongest argument for MGEE centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 22.7%.

Bull Case : TAC

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

Bear Case : MGEE

The primary concerns for MGEE are Revenue Growth, Piotroski F-Score, PEG Ratio.

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

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

MGEE carries more volatility with a beta of 0.70 — 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

MGEE scores higher overall (61/100 vs 43/100), backed by strong 19.9% 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.

MGE Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.

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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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