H2O America (HTO)vsSouthern Company (SO)
HTO
H2O America
$62.66
-0.59%
UTILITIES · Cap: $2.69B
SO
Southern Company
$87.17
-0.66%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 3543% more annual revenue ($30.18B vs $828.50M). SO leads profitability with a 15.4% profit margin vs 12.9%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).
HTO
Buy55
out of 100
Grade: C
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+29.8%
Fair Value
$74.04
Current Price
$62.66
$11.38 discount
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.17
$25.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
HTO carries more volatility with a beta of 0.33 — expect wider price swings.
HTO is growing revenue faster at 6.2% — sustainability is the question.
HTO generates stronger free cash flow (-63M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (66/100 vs 55/100), backed by strong 15.4% margins. HTO offers better value entry with a 29.8% margin of safety. Both earn "Strong 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.
H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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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