TransAlta Corp (TAC)vsEssential Utilities Inc (WTRG)
TAC
TransAlta Corp
$12.48
0.00%
UTILITIES · Cap: $3.70B
WTRG
Essential Utilities Inc
$38.03
-0.45%
UTILITIES · Cap: $10.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Essential Utilities Inc generates 3% more annual revenue ($2.47B vs $2.40B). WTRG leads profitability with a 24.9% profit margin vs -5.7%. WTRG appears more attractively valued with a PEG of 3.62. WTRG earns a higher WallStSmart Score of 60/100 (C+).
TAC
Avoid31
out of 100
Grade: F
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.3%
Fair Value
$21.96
Current Price
$12.48
$9.48 discount
Margin of Safety
+47.5%
Fair Value
$71.32
Current Price
$38.03
$33.29 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Strong operational efficiency at 32.4%
Keeps 25 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
15.7% revenue growth
Areas to Watch
Trading at 11.2x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -9.6% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Earnings declined 30.0%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : TAC
TAC has a balanced fundamental profile.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : TAC
The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.
Bear Case : WTRG
The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
TAC profiles as a turnaround stock while WTRG is a growth play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.77 — expect wider price swings.
WTRG is growing revenue faster at 15.7% — sustainability is the question.
TAC generates stronger free cash flow (147M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 31/100), backed by strong 24.9% margins and 15.7% revenue growth. TAC offers better value entry with a 38.3% margin of safety. 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.
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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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