WallStSmart

CMS Energy Corporation (CMS)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 246% more annual revenue ($29.55B vs $8.54B). SO leads profitability with a 14.7% profit margin vs 12.5%. SO appears more attractively valued with a PEG of 2.67. CMS earns a higher WallStSmart Score of 62/100 (C+).

CMS

Buy

62

out of 100

Grade: C+

Growth: 4.7Profit: 6.5Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.67

SO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMSSignificantly Overvalued (-21.6%)

Margin of Safety

-21.6%

Fair Value

$61.28

Current Price

$75.44

$14.16 premium

UndervaluedFair: $61.28Overvalued
SOSignificantly Overvalued (-254.9%)

Margin of Safety

-254.9%

Fair Value

$26.66

Current Price

$94.61

$67.95 premium

UndervaluedFair: $26.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CMS2 strengths · Avg: 8.0/10
Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

SO2 strengths · Avg: 8.5/10
Market CapQuality
$105.91B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

CMS4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.872/10

Expensive relative to growth rate

Free Cash FlowQuality
$-596.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.1%2/10

Earnings declined 22.1%

Free Cash FlowQuality
$-1.86B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CMS

The strongest argument for CMS centers on Price/Book, Operating Margin. Revenue growth of 12.3% demonstrates continued momentum.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : CMS

The primary concerns for CMS are Piotroski F-Score, PEG Ratio, Free Cash Flow.

Bear Case : SO

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

Key Dynamics to Monitor

CMS carries more volatility with a beta of 0.43 — expect wider price swings.

CMS is growing revenue faster at 12.3% — sustainability is the question.

CMS generates stronger free cash flow (-596M), providing more financial flexibility.

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

Bottom Line

CMS scores higher overall (62/100 vs 54/100) and 12.3% revenue growth. 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.

CMS Energy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.

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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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