WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 2234% more annual revenue ($30.18B vs $1.29B). SO leads profitability with a 15.4% profit margin vs 9.7%. SO appears more attractively valued with a PEG of 2.41. SO earns a higher WallStSmart Score of 66/100 (B-).

NWN

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 3.0
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

$59.10

Current Price

$50.43

$8.67 discount

UndervaluedFair: $59.10Overvalued
SOSignificantly Overvalued (-49.7%)

Margin of Safety

-49.7%

Fair Value

$61.91

Current Price

$92.30

$30.39 premium

UndervaluedFair: $61.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NWN2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

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

NWN4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Debt/EquityHealth
1.733/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Debt/EquityHealth
1.953/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : NWN

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

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 : NWN

The primary concerns for NWN are Revenue Growth, Return on Equity, Debt/Equity. Debt-to-equity of 1.73 is elevated, increasing financial risk.

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

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

NWN is growing revenue faster at 3.1% — sustainability is the question.

NWN generates stronger free cash flow (-12M), providing more financial flexibility.

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

Bottom Line

SO scores higher overall (66/100 vs 54/100), backed by strong 15.4% margins. NWN offers better value entry with a 17.3% 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.

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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