WallStSmart

Centrais Elétricas Brasileiras S.A. - Eletrobrás (EBR-B)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Centrais Elétricas Brasileiras S.A. - Eletrobrás generates 44% more annual revenue ($42.64B vs $29.55B). SO leads profitability with a 14.7% profit margin vs -14.1%. EBR-B trades at a lower P/E of 21.6x. SO earns a higher WallStSmart Score of 54/100 (C-).

EBR-B

Avoid

31

out of 100

Grade: F

Growth: 3.3Profit: 2.0Value: 5.3Quality: 5.0

SO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EBR-B.

SOSignificantly Overvalued (-35.0%)

Margin of Safety

-35.0%

Fair Value

$71.61

Current Price

$96.70

$25.09 premium

UndervaluedFair: $71.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBR-B2 strengths · Avg: 9.0/10
Price/BookValuation
0.2x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.66B8/10

Generating 3.7B in free cash flow

SO1 strengths · Avg: 9.0/10
Market CapQuality
$109.01B9/10

Large-cap with strong market position

Areas to Watch

EBR-B4 concerns · Avg: 1.8/10
Return on EquityProfitability
-5.2%2/10

ROE of -5.2% — below average capital efficiency

Revenue GrowthGrowth
-9.4%2/10

Revenue declined 9.4%

EPS GrowthGrowth
-0.2%2/10

Earnings declined 0.2%

Profit MarginProfitability
-14.1%1/10

Currently unprofitable

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

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 : EBR-B

The strongest argument for EBR-B centers on Price/Book, Free Cash Flow.

Bull Case : SO

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

Bear Case : EBR-B

The primary concerns for EBR-B are Return on Equity, Revenue Growth, EPS Growth.

Bear Case : SO

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

Key Dynamics to Monitor

EBR-B profiles as a turnaround stock while SO is a value play — different risk/reward profiles.

SO carries more volatility with a beta of 0.41 — expect wider price swings.

SO is growing revenue faster at 10.1% — sustainability is the question.

EBR-B generates stronger free cash flow (3.7B), providing more financial flexibility.

Bottom Line

SO scores higher overall (54/100 vs 31/100) and 10.1% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Centrais Elétricas Brasileiras S.A. - Eletrobrás

UTILITIES · UTILITIES - RENEWABLE · USA

Centrais Eltricas Brasileiras SA - Eletrobras, is dedicated to the generation, transmission and distribution of electrical energy in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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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