WallStSmart

OPAL Fuels Inc (OPAL)vsSouthwest Gas Holdings Inc (SWX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Gas Holdings Inc generates 456% more annual revenue ($1.94B vs $348.98M). SWX leads profitability with a 22.7% profit margin vs 4.2%. OPAL trades at a lower P/E of 13.7x. SWX earns a higher WallStSmart Score of 57/100 (C).

OPAL

Hold

37

out of 100

Grade: F

Growth: 6.0Profit: 4.5Value: 5.7Quality: 3.0
Piotroski: 2/9Altman Z: 0.89

SWX

Buy

57

out of 100

Grade: C

Growth: 2.0Profit: 6.5Value: 7.3Quality: 4.8
Piotroski: 4/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OPALSignificantly Overvalued (-132.3%)

Margin of Safety

-132.3%

Fair Value

$1.02

Current Price

$2.28

$1.26 premium

UndervaluedFair: $1.02Overvalued
SWXSignificantly Overvalued (-289.0%)

Margin of Safety

-289.0%

Fair Value

$22.10

Current Price

$85.82

$63.72 premium

UndervaluedFair: $22.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OPAL2 strengths · Avg: 8.0/10
P/E RatioValuation
13.7x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
24.7%8/10

Revenue surging 24.7% year-over-year

SWX3 strengths · Avg: 9.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Profit MarginProfitability
22.7%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

OPAL4 concerns · Avg: 3.0/10
Market CapQuality
$357.20M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.6%3/10

ROE of 7.6% — below average capital efficiency

Profit MarginProfitability
4.2%3/10

4.2% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

SWX4 concerns · Avg: 3.3/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

P/E RatioValuation
26.6x4/10

Moderate valuation

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Revenue GrowthGrowth
-13.1%2/10

Revenue declined 13.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : OPAL

The strongest argument for OPAL centers on P/E Ratio, Revenue Growth. Revenue growth of 24.7% demonstrates continued momentum.

Bull Case : SWX

The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.

Bear Case : OPAL

The primary concerns for OPAL are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 47.27 is elevated, increasing financial risk. Thin 4.2% margins leave little buffer for downturns.

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.

Key Dynamics to Monitor

OPAL profiles as a growth stock while SWX is a declining play — different risk/reward profiles.

OPAL carries more volatility with a beta of 1.08 — expect wider price swings.

OPAL is growing revenue faster at 24.7% — sustainability is the question.

OPAL generates stronger free cash flow (-8M), providing more financial flexibility.

Bottom Line

SWX scores higher overall (57/100 vs 37/100), backed by strong 22.7% 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.

OPAL Fuels Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

OPAL Fuels Inc. is a leading company in the renewable natural gas (RNG) industry, focused on transforming organic waste into sustainable energy solutions that contribute to a low-carbon economy. With a diverse array of RNG production facilities and key strategic partnerships, OPAL is well-positioned to enhance its market footprint and drive growth. By leveraging advanced technologies and innovative practices, the company not only meets the increasing demand for eco-friendly energy alternatives but also aims to generate significant value in the rapidly evolving energy sector.

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Southwest Gas Holdings Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.

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