WallStSmart

Cardinal Health Inc (CAH)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cardinal Health Inc generates 731% more annual revenue ($250.74B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.39. SO earns a higher WallStSmart Score of 56/100 (C).

CAH

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 4.5Value: 4.0Quality: 7.0
Piotroski: 4/9Altman Z: 4.30

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

CAHSignificantly Overvalued (-31.2%)

Margin of Safety

-31.2%

Fair Value

$170.63

Current Price

$201.77

$31.14 premium

UndervaluedFair: $170.63Overvalued
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

CAH4 strengths · Avg: 9.3/10
Debt/EquityHealth
-3.1510/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.3010/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.43B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.68B8/10

Generating 1.7B in free cash flow

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

CAH4 concerns · Avg: 3.3/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
0.6%3/10

0.6% margin — thin

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

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 : CAH

The strongest argument for CAH centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.39 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 : CAH

The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.

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

CAH carries more volatility with a beta of 0.53 — expect wider price swings.

CAH is growing revenue faster at 11.0% — sustainability is the question.

CAH generates stronger free cash flow (1.7B), providing more financial flexibility.

Monitor MEDICAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (56/100 vs 47/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Cardinal Health Inc

HEALTHCARE · MEDICAL DISTRIBUTION · USA

Cardinal Health, Inc. is an American multinational health care services company.

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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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