WallStSmart

Sempra Energy (SRE)vsTransAlta Corp (TAC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sempra Energy generates 513% more annual revenue ($13.55B vs $2.21B). SRE leads profitability with a 14.4% profit margin vs -7.7%. SRE appears more attractively valued with a PEG of 0.78. SRE earns a higher WallStSmart Score of 64/100 (C+).

SRE

Buy

64

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 4/9Altman Z: 0.97

TAC

Avoid

33

out of 100

Grade: F

Growth: 2.0Profit: 4.0Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: -0.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SRESignificantly Overvalued (-51.4%)

Margin of Safety

-51.4%

Fair Value

$60.40

Current Price

$90.34

$29.94 premium

UndervaluedFair: $60.40Overvalued

Intrinsic value data unavailable for TAC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SRE4 strengths · Avg: 8.8/10
Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Market CapQuality
$58.54B9/10

Large-cap with strong market position

PEG RatioValuation
0.788/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

TAC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SRE4 concerns · Avg: 3.0/10
P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.4%3/10

ROE of 6.4% — below average capital efficiency

Debt/EquityHealth
1.133/10

Elevated debt levels

Revenue GrowthGrowth
-3.9%2/10

Revenue declined 3.9%

TAC4 concerns · Avg: 2.8/10
Price/BookValuation
11.3x4/10

Trading at 11.3x 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
-12.1%2/10

ROE of -12.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : SRE

The strongest argument for SRE centers on Operating Margin, Market Cap, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : TAC

TAC has a balanced fundamental profile.

Bear Case : SRE

The primary concerns for SRE are P/E Ratio, Return on Equity, Debt/Equity.

Bear Case : TAC

The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.

Key Dynamics to Monitor

SRE profiles as a declining stock while TAC is a turnaround play — different risk/reward profiles.

SRE carries more volatility with a beta of 0.60 — expect wider price swings.

SRE is growing revenue faster at -3.9% — sustainability is the question.

TAC generates stronger free cash flow (93M), providing more financial flexibility.

Bottom Line

SRE scores higher overall (64/100 vs 33/100). 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.

Sempra Energy

UTILITIES · UTILITIES - DIVERSIFIED · USA

Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.

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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