WallStSmart

NorthWestern Corporation (NWE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 1684% more annual revenue ($30.18B vs $1.69B). SO leads profitability with a 15.4% profit margin vs 10.1%. SO appears more attractively valued with a PEG of 2.41. SO earns a higher WallStSmart Score of 66/100 (B-).

NWE

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.75

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NWESignificantly Overvalued (-22.0%)

Margin of Safety

-22.0%

Fair Value

$56.09

Current Price

$72.09

$16.00 premium

UndervaluedFair: $56.09Overvalued
SOSignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$61.82

Current Price

$92.69

$30.87 premium

UndervaluedFair: $61.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NWE1 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

SO4 strengths · Avg: 8.3/10
Market CapQuality
$107.10B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

Areas to Watch

NWE4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Debt/EquityHealth
1.133/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SO4 concerns · Avg: 3.3/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : NWE

The strongest argument for NWE centers on Price/Book. Revenue growth of 14.6% demonstrates continued momentum.

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 : NWE

The primary concerns for NWE are P/E Ratio, Return on Equity, Debt/Equity.

Bear Case : SO

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

Key Dynamics to Monitor

NWE carries more volatility with a beta of 0.36 — expect wider price swings.

NWE is growing revenue faster at 14.6% — sustainability is the question.

NWE generates stronger free cash flow (43M), providing more financial flexibility.

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

Bottom Line

SO scores higher overall (66/100 vs 61/100), backed by strong 15.4% margins. 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.

NorthWestern Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial and industrial customers. The company is headquartered in Sioux Falls, South Dakota.

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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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