WallStSmart

Public Service Enterprise Group Inc (PEG)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 141% more annual revenue ($30.18B vs $12.54B). PEG leads profitability with a 16.0% profit margin vs 15.4%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

PEG

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.96

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

PEGSignificantly Overvalued (-70.1%)

Margin of Safety

-70.1%

Fair Value

$49.46

Current Price

$72.39

$22.93 premium

UndervaluedFair: $49.46Overvalued
SOSignificantly Overvalued (-40.5%)

Margin of Safety

-40.5%

Fair Value

$62.06

Current Price

$87.17

$25.11 premium

UndervaluedFair: $62.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEG1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

SO4 strengths · Avg: 8.3/10
Market CapQuality
$100.28B9/10

Large-cap with strong market position

Price/BookValuation
2.5x8/10

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

PEG4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.423/10

Elevated debt levels

PEG RatioValuation
3.642/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

EPS GrowthGrowth
-42.7%2/10

Earnings declined 42.7%

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.074/10

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 : PEG

The strongest argument for PEG centers on Price/Book. Profitability is solid with margins at 16.0% and operating margin at 18.9%.

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 : PEG

The primary concerns for PEG are Debt/Equity, PEG Ratio, Revenue Growth.

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

PEG profiles as a declining stock while SO is a value play — different risk/reward profiles.

PEG carries more volatility with a beta of 0.53 — expect wider price swings.

SO is growing revenue faster at 0.1% — sustainability is the question.

PEG generates stronger free cash flow (498M), providing more financial flexibility.

Bottom Line

SO scores higher overall (66/100 vs 50/100), 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.

Public Service Enterprise Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

The Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey.

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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