WallStSmart

Algonquin Power & Utilities Corp (AQN)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 1091% more annual revenue ($30.18B vs $2.53B). SO leads profitability with a 14.5% profit margin vs 6.7%. AQN trades at a lower P/E of 22.9x. SO earns a higher WallStSmart Score of 56/100 (C).

AQN

Buy

52

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 7.0Quality: 4.0
Piotroski: 5/9Altman Z: 0.34

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AQNUndervalued (+70.3%)

Margin of Safety

+70.3%

Fair Value

$22.27

Current Price

$6.01

$16.26 discount

UndervaluedFair: $22.27Overvalued
SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AQN2 strengths · Avg: 9.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
22.6%8/10

Strong operational efficiency at 22.6%

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

AQN4 concerns · Avg: 2.8/10
Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

Profit MarginProfitability
6.7%3/10

6.7% margin — thin

Debt/EquityHealth
1.443/10

Elevated debt levels

EPS GrowthGrowth
-10.7%2/10

Earnings declined 10.7%

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

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 : AQN

The strongest argument for AQN centers on Price/Book, Operating Margin. Revenue growth of 14.4% demonstrates continued momentum.

Bull Case : SO

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

Bear Case : AQN

The primary concerns for AQN are Return on Equity, Profit Margin, Debt/Equity.

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

AQN carries more volatility with a beta of 0.90 — expect wider price swings.

AQN is growing revenue faster at 14.4% — sustainability is the question.

AQN generates stronger free cash flow (-85M), providing more financial flexibility.

Monitor UTILITIES - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (56/100 vs 52/100). AQN offers better value entry with a 70.3% margin of safety. 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.

Algonquin Power & Utilities Corp

UTILITIES · UTILITIES - DIVERSIFIED · USA

Algonquin Power & Utilities Corp. The company is headquartered in Oakville, Canada.

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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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