Southwest Gas Holdings Inc (SWX)vsTransAlta Corp (TAC)
SWX
Southwest Gas Holdings Inc
$86.11
-0.91%
UTILITIES · Cap: $6.44B
TAC
TransAlta Corp
$12.08
-0.82%
UTILITIES · Cap: $3.91B
Smart Verdict
WallStSmart Research — data-driven comparison
TransAlta Corp generates 30% more annual revenue ($2.27B vs $1.74B). SWX leads profitability with a 31.4% profit margin vs -1.0%. SWX appears more attractively valued with a PEG of 1.86. SWX earns a higher WallStSmart Score of 65/100 (B-).
SWX
Strong Buy65
out of 100
Grade: B-
TAC
Hold43
out of 100
Grade: D
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 31 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 24.2%
Earnings expanding 20.9% YoY
Strong operational efficiency at 33.3%
Areas to Watch
Expensive relative to growth rate
Revenue declined 9.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : SWX
The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.
Bull Case : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.
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
SWX profiles as a declining stock while TAC is a turnaround play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.56 — 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
SWX scores higher overall (65/100 vs 43/100), backed by strong 31.4% margins. Both earn "Strong 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.
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.
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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