WallStSmart

Northwest Natural Gas Co (NWN)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 2247% more annual revenue ($30.18B vs $1.29B). SO leads profitability with a 14.5% profit margin vs 9.6%. NWN appears more attractively valued with a PEG of 2.54. NWN earns a higher WallStSmart Score of 58/100 (C).

NWN

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59

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

NWNUndervalued (+17.3%)

Margin of Safety

+17.3%

Fair Value

$59.03

Current Price

$49.73

$9.30 discount

UndervaluedFair: $59.03Overvalued
SOSignificantly Overvalued (-51.3%)

Margin of Safety

-51.3%

Fair Value

$62.89

Current Price

$97.98

$35.09 premium

UndervaluedFair: $62.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NWN3 strengths · Avg: 9.3/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

SO3 strengths · Avg: 8.3/10
Market CapQuality
$109.53B9/10

Large-cap with strong market position

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

NWN4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.542/10

Expensive relative to growth rate

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

Weak financial health signals

PEG RatioValuation
2.732/10

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 : NWN

The strongest argument for NWN centers on Price/Book, Operating Margin, P/E Ratio.

Bull Case : SO

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

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.70 is elevated, increasing financial risk.

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

NWN carries more volatility with a beta of 0.43 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

NWN generates stronger free cash flow (2M), providing more financial flexibility.

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

Bottom Line

NWN scores higher overall (58/100 vs 56/100). 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.

Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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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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