Atmos Energy Corporation (ATO)vsSouthern Company (SO)
ATO
Atmos Energy Corporation
$163.19
-0.98%
UTILITIES · Cap: $28.40B
SO
Southern Company
$87.02
-0.17%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 513% more annual revenue ($30.18B vs $4.92B). ATO leads profitability with a 28.5% profit margin vs 15.4%. ATO appears more attractively valued with a PEG of 2.02. SO earns a higher WallStSmart Score of 66/100 (B-).
ATO
Strong Buy66
out of 100
Grade: B-
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ATO.
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.02
$24.96 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 37.2%
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 23.3% YoY
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
Expensive relative to growth rate
4.8% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ATO
The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 28.5% and operating margin at 37.2%.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : ATO
The primary concerns for ATO are PEG Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
ATO carries more volatility with a beta of 0.59 — expect wider price swings.
ATO is growing revenue faster at 4.8% — sustainability is the question.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ATO scores higher overall (66/100 vs 66/100), backed by strong 28.5% margins. Both earn "Strong Buy" and "Strong 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.
Atmos Energy Corporation
UTILITIES · UTILITIES - REGULATED GAS · USA
Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States' largest natural-gas-only distributors.
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.
Compare with Other UTILITIES - REGULATED GAS Stocks
Want to dig deeper into these stocks?