TransAlta (TAC) vs. Its Rivals Head to Head Comparison

TransAlta (NYSE: TAC) is one of 69 public companies in the “Electric services” industry, but how does it contrast to its competitors? We will compare TransAlta to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for TransAlta and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransAlta 0 1 1 0 2.50
TransAlta Competitors 449 2409 2070 60 2.35



As a group, “Electric services” companies have a potential upside of 10.48%. Given TransAlta’s competitors higher possible upside, analysts plainly believe TransAlta has less favorable growth aspects than its competitors.

Volatility and Risk

TransAlta has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, TransAlta’s competitors have a beta of 0.03, suggesting that their average stock price is 97% less volatile than the S&P 500.

Dividends

TransAlta pays an annual dividend of $0.12 per share and has a dividend yield of 2.3%. TransAlta pays out -66.7% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 72.9% of their earnings in the form of a dividend.

Profitability

This table compares TransAlta and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransAlta -4.55% 0.19% 0.07%
TransAlta Competitors -21.43% 4.82% -0.39%

Insider and Institutional Ownership

52.9% of TransAlta shares are held by institutional investors. Comparatively, 64.8% of shares of all “Electric services” companies are held by institutional investors. 3.0% of shares of all “Electric services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares TransAlta and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
TransAlta $1.78 billion -$123.42 million -29.56
TransAlta Competitors $8.65 billion $479.99 million 11.59

TransAlta’s competitors have higher revenue and earnings than TransAlta. TransAlta is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

TransAlta competitors beat TransAlta on 8 of the 14 factors compared.

TransAlta Company Profile

TransAlta Corporation operates as non-regulated electricity generation and energy marketing company in Canada, the United States, and Western Australia. The company operates through eight segments: Canadian Coal, U.S. Coal, Canadian Gas, Australian Gas, Wind and Solar, Hydro, Energy Marketing, and Corporate. It generates and markets electricity through various generation facilities. The company has an aggregate net ownership interest of approximately 8,546 megawatts of generating capacity. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.

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