Southern Company (SO)vsSonos Inc (SONO)
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
SONO
Sonos Inc
$15.06
+1.14%
TECHNOLOGY · Cap: $1.77B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1967% more annual revenue ($30.18B vs $1.46B). SO leads profitability with a 14.5% profit margin vs 1.6%. SO trades at a lower P/E of 23.5x. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.0%
Fair Value
$73.42
Current Price
$91.80
$18.38 premium
Margin of Safety
+43.7%
Fair Value
$29.31
Current Price
$15.06
$14.25 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Earnings expanding 87.5% YoY
Areas to Watch
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.4% — sustainability is the question.
SONO generates stronger free cash flow (-70M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (56/100 vs 45/100). SONO offers better value entry with a 43.7% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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