WallStSmart

FirstEnergy Corporation (FE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 98% more annual revenue ($29.55B vs $14.90B). SO leads profitability with a 14.7% profit margin vs 6.9%. FE appears more attractively valued with a PEG of 1.48. FE earns a higher WallStSmart Score of 65/100 (C+).

FE

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 7.3Quality: 3.8
Piotroski: 4/9Altman 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

FESignificantly Overvalued (-94.5%)

Margin of Safety

-94.5%

Fair Value

$24.64

Current Price

$49.52

$24.88 premium

UndervaluedFair: $24.64Overvalued
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

FE3 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.6%8/10

Strong operational efficiency at 26.6%

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

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

FE4 concerns · Avg: 3.3/10
P/E RatioValuation
27.9x4/10

Moderate valuation

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Free Cash FlowQuality
$-30.00M2/10

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 : FE

The strongest argument for FE centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.48 suggests the stock is reasonably priced for its growth.

Bull Case : SO

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

Bear Case : FE

The primary concerns for FE are P/E Ratio, EPS Growth, Profit Margin.

Bear Case : SO

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

Key Dynamics to Monitor

FE profiles as a growth stock while SO is a value play — different risk/reward profiles.

FE carries more volatility with a beta of 0.60 — expect wider price swings.

FE is growing revenue faster at 20.7% — sustainability is the question.

FE generates stronger free cash flow (-30M), providing more financial flexibility.

Bottom Line

FE scores higher overall (65/100 vs 54/100) and 20.7% 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.

FirstEnergy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

FirstEnergy Corp is an electric utility headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the distribution, transmission, and generation of electricity, as well as energy management and other energy-related services.

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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