TransAlta (NYSE: TAC) is one of 69 public companies in the “Electric services” industry, but how does it contrast to its rivals? We will compare TransAlta to similar companies based on the strength of its analyst recommendations, earnings, profitability, institutional ownership, risk, valuation and dividends.
Institutional & Insider Ownership
53.8% of TransAlta shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 3.7% of shares of all “Electric services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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 3.7% and pay out 72.6% of their earnings in the form of a dividend.
Profitability
This table compares TransAlta and its rivals’ 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 | -22.02% | 4.57% | -0.48% |
Earnings & Valuation
This table compares TransAlta and its rivals gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| TransAlta | $1.78 billion | -$123.42 million | -28.89 |
| TransAlta Competitors | $8.61 billion | $463.37 million | 11.87 |
TransAlta’s rivals have higher revenue and earnings than TransAlta. TransAlta is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Analyst Ratings
This is a summary of recent ratings and price targets for TransAlta and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TransAlta | 0 | 1 | 1 | 0 | 2.50 |
| TransAlta Competitors | 447 | 2402 | 2068 | 60 | 2.35 |
As a group, “Electric services” companies have a potential upside of 8.43%. Given TransAlta’s rivals higher possible upside, analysts clearly believe TransAlta has less favorable growth aspects than its rivals.
Risk and Volatility
TransAlta has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, TransAlta’s rivals have a beta of 0.03, meaning that their average share price is 97% less volatile than the S&P 500.
Summary
TransAlta rivals beat TransAlta on 9 of the 15 factors compared.
About TransAlta
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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