American Water Works (AWK)vsSouthern Company (SO)
AWK
American Water Works
$124.47
+1.82%
UTILITIES · Cap: $24.67B
SO
Southern Company
$92.60
+1.22%
UTILITIES · Cap: $102.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 480% more annual revenue ($30.18B vs $5.21B). AWK leads profitability with a 21.2% profit margin vs 14.5%. AWK appears more attractively valued with a PEG of 2.28. AWK earns a higher WallStSmart Score of 60/100 (C).
AWK
Buy60
out of 100
Grade: C
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.5%
Fair Value
$100.98
Current Price
$124.47
$23.49 premium
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Earnings declined 4.8%
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
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
AWK profiles as a mature stock while SO is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.61 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
AWK generates stronger free cash flow (-354M), providing more financial flexibility.
Bottom Line
AWK scores higher overall (60/100 vs 56/100), backed by strong 21.2% margins. 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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