WallStSmart

CenterPoint Energy Inc (CNP)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 216% more annual revenue ($29.55B vs $9.36B). SO leads profitability with a 14.7% profit margin vs 11.2%. CNP appears more attractively valued with a PEG of 2.56. CNP earns a higher WallStSmart Score of 60/100 (C+).

CNP

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 4.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.63

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

CNPSignificantly Overvalued (-69.7%)

Margin of Safety

-69.7%

Fair Value

$24.19

Current Price

$42.07

$17.88 premium

UndervaluedFair: $24.19Overvalued
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

CNP2 strengths · Avg: 8.0/10
Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

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

CNP4 concerns · Avg: 2.8/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.562/10

Expensive relative to growth rate

Free Cash FlowQuality
$-707.00M2/10

Negative free cash flow — burning cash

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 : CNP

The strongest argument for CNP centers on Price/Book, Operating Margin. Revenue growth of 10.7% 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 : CNP

The primary concerns for CNP are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : SO

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

Key Dynamics to Monitor

CNP carries more volatility with a beta of 0.54 — expect wider price swings.

CNP is growing revenue faster at 10.7% — sustainability is the question.

CNP generates stronger free cash flow (-707M), providing more financial flexibility.

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

Bottom Line

CNP scores higher overall (60/100 vs 54/100) and 10.7% 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.

CenterPoint Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

CenterPoint Energy, Inc. is an American Fortune 500 electric and natural gas utility serving several markets in the American states of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas.

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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