WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southwest Gas Holdings Inc generates 428% more annual revenue ($1.78B vs $336.94M). SWX leads profitability with a 26.1% profit margin vs 5.7%. SWX trades at a lower P/E of 27.0x. SWX earns a higher WallStSmart Score of 65/100 (B-).

OPAL

Avoid

29

out of 100

Grade: F

Growth: 4.0Profit: 5.0Value: 7.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.05

SWX

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.5Value: 5.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OPALUndervalued (+44.4%)

Margin of Safety

+44.4%

Fair Value

$4.26

Current Price

$2.22

$2.04 discount

UndervaluedFair: $4.26Overvalued

Intrinsic value data unavailable for SWX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OPAL1 strengths · Avg: 10.0/10
Return on EquityProfitability
234.4%10/10

Every $100 of equity generates 234 in profit

SWX4 strengths · Avg: 8.8/10
Operating MarginProfitability
37.9%10/10

Strong operational efficiency at 37.9%

Profit MarginProfitability
26.1%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.9%8/10

Earnings expanding 20.9% YoY

Areas to Watch

OPAL4 concerns · Avg: 3.5/10
P/E RatioValuation
29.9x4/10

Moderate valuation

Price/BookValuation
8.2x4/10

Trading at 8.2x book value

Market CapQuality
$366.12M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

SWX4 concerns · Avg: 3.0/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

P/E RatioValuation
27.0x4/10

Moderate valuation

Revenue GrowthGrowth
-21.6%2/10

Revenue declined 21.6%

Free Cash FlowQuality
$-46.59M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : OPAL

The strongest argument for OPAL centers on Return on Equity.

Bull Case : SWX

The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.

Bear Case : OPAL

The primary concerns for OPAL are P/E Ratio, Price/Book, Market Cap. Debt-to-equity of 54.41 is elevated, increasing financial risk.

Bear Case : SWX

The primary concerns for SWX are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

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

OPAL carries more volatility with a beta of 0.77 — expect wider price swings.

OPAL is growing revenue faster at -14.1% — sustainability is the question.

OPAL generates stronger free cash flow (-11M), providing more financial flexibility.

Bottom Line

SWX scores higher overall (65/100 vs 29/100), backed by strong 26.1% margins. OPAL offers better value entry with a 44.4% margin of safety. Both earn "Strong 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.

OPAL Fuels Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

OPAL Fuels Inc. is a leading participant in the renewable natural gas (RNG) sector, specializing in the transformation of organic waste into sustainable energy solutions that contribute to a low-carbon economy. The company boasts a robust portfolio of RNG production facilities and has cultivated strategic partnerships to strengthen its market presence. With a commitment to advanced technologies and innovative practices, OPAL Fuels is well-positioned to meet the growing demand for environmentally friendly energy alternatives, underscoring its potential for significant value creation within the evolving energy landscape.

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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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