WallStSmart

AutoNation Inc (AN)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 10% more annual revenue ($30.18B vs $27.49B). SO leads profitability with a 14.5% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.74. AN earns a higher WallStSmart Score of 63/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANUndervalued (+15.1%)

Margin of Safety

+15.1%

Fair Value

$244.66

Current Price

$205.97

$38.69 discount

UndervaluedFair: $244.66Overvalued
SOSignificantly Overvalued (-25.0%)

Margin of Safety

-25.0%

Fair Value

$73.42

Current Price

$91.80

$18.38 premium

UndervaluedFair: $73.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.0/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

SO3 strengths · Avg: 8.3/10
Market CapQuality
$103.49B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.5% margins leave little buffer for downturns.

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

AN carries more volatility with a beta of 0.79 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

AN generates stronger free cash flow (-34M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AN scores higher overall (63/100 vs 56/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

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