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ATO vs FE

ATO
Atmos Energy Corporation
NEUTRAL
Price
$165.34
Market Cap
$26.74B
Sector
Utilities
AI Confidence
72%
FE
FirstEnergy Corp.
BEARISH
Price
$49.41
Market Cap
$28.58B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
ATO
22.16
FE
28.07
Forward P/E
ATO
18.94
FE
16.77
P/B Ratio
ATO
1.97
FE
2.28
P/S Ratio
ATO
5.69
FE
1.92
EV/EBITDA
ATO
15.43
FE
11.51

Profitability

Gross Margin
ATO
58.13%
FE
66.87%
Operating Margin
ATO
30.7%
FE
26.63%
Profit Margin
ATO
25.49%
FE
6.84%
ROE
ATO
9.32%
FE
9.2%
ROA
ATO
3.71%
FE
3.72%

Growth

Revenue Growth
ATO
12.1%
FE
20.7%
Earnings Growth
ATO
25.6%
FE
--

Financial Health

Debt/Equity
ATO
0.69
FE
1.93
Current Ratio
ATO
0.77
FE
0.56
Quick Ratio
ATO
0.43
FE
0.39

Dividends

Dividend Yield
ATO
2.42%
FE
3.76%
Payout Ratio
ATO
46.65%
FE
100.0%

AI Verdict

ATO NEUTRAL

ATO exhibits a mixed financial profile with a Piotroski F-Score of 4/9 indicating stable but not strong financial health, and no available Altman Z-Score limits distress risk assessment. The stock trades above its Graham Number of $118.68 at $165.34, reflecting a premium valuation, though below the growth-based intrinsic value of $220.07. Strong profitability metrics like a 25.49% profit margin and 30.70% operating margin contrast with weak liquidity (Current Ratio: 0.77) and bearish technical trend. Analysts consensus is 'hold' with a target price of $177.55, implying modest upside, while insider activity shows slight selling pressure.

Strengths
High profitability with 25.49% profit margin and 30.70% operating margin, well above sector average of 13.47%
Strong year-over-year earnings growth of 28.9% and revenue growth of 12.10%, outpacing peer averages
Defensive dividend profile with a sustainable 46.65% payout ratio and 2.42% yield
Risks
Piotroski F-Score of 4/9 suggests borderline financial health, limiting confidence in operational strength
Very weak liquidity with Current Ratio of 0.77 and Quick Ratio of 0.43, below the safe threshold of 1.0
Bearish technical trend (0/100) and recent price weakness: -3.0% over 1 week and -1.8% over 1 month
FE BEARISH

FirstEnergy Corp (FE) exhibits significant valuation misalignment, trading at $49.41 despite a Graham Number of $29.28 and an Intrinsic Value of $12.32. While the Piotroski F-Score of 4/9 indicates stable health, the company faces severe liquidity pressure with a current ratio of 0.56 and a high debt-to-equity ratio of 1.93. Most concerning is the 100% dividend payout ratio and the divergence between strong revenue growth (20.7%) and negative YoY EPS growth (-20.9%). The combination of bearish insider sentiment and a weak technical trend suggests the current price is unsustainable.

Strengths
Strong top-line revenue growth (20.7% YoY)
High gross margins (66.87%) typical of regulated utilities
Positive 1-year price performance (+21.6%)
Risks
Unsustainable dividend payout ratio of 100%
Severe valuation premium over Graham and Intrinsic value estimates
Negative YoY EPS growth (-20.9%) despite revenue increases

Compare Another Pair

ATO vs FE: Head-to-Head Comparison

This page compares Atmos Energy Corporation (ATO) and FirstEnergy Corp. (FE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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