WallStSmart

MGE Energy Inc (MGEE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 3921% more annual revenue ($30.18B vs $750.39M). MGEE leads profitability with a 19.0% profit margin vs 14.5%. SO appears more attractively valued with a PEG of 2.53. MGEE earns a higher WallStSmart Score of 61/100 (C+).

MGEE

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.20

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for MGEE.

SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGEE2 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

MGEE4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.122/10

Expensive relative to growth rate

Free Cash FlowQuality
$-20.45M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : MGEE

The strongest argument for MGEE centers on Price/Book, Operating Margin. Profitability is solid with margins at 19.0% and operating margin at 23.5%. Revenue growth of 10.8% demonstrates continued momentum.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bear Case : MGEE

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

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

MGEE profiles as a mature stock while SO is a value play — different risk/reward profiles.

MGEE carries more volatility with a beta of 0.72 — expect wider price swings.

MGEE is growing revenue faster at 10.8% — sustainability is the question.

MGEE generates stronger free cash flow (-20M), providing more financial flexibility.

Bottom Line

MGEE scores higher overall (61/100 vs 56/100), backed by strong 19.0% margins and 10.8% 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.

MGE Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.

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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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