Southern Company (SO)vsStem Inc (STEM)
SO
Southern Company
$92.60
-0.17%
UTILITIES · Cap: $102.01B
STEM
Stem Inc
$9.04
-9.78%
UTILITIES · Cap: $68.97M
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 19654% more annual revenue ($30.18B vs $152.75M). STEM leads profitability with a 94.2% profit margin vs 14.5%. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
STEM
Hold42
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Margin of Safety
+65.9%
Fair Value
$33.73
Current Price
$9.04
$24.69 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%
Keeps 94 of every $100 in revenue as profit
Conservative balance sheet, low leverage
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -5921.0% — below average capital efficiency
Revenue declined 10.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : STEM
The strongest argument for STEM centers on Profit Margin, Debt/Equity. Profitability is solid with margins at 94.2% and operating margin at -37.5%.
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.
Bear Case : STEM
The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
SO profiles as a value stock while STEM is a declining play — different risk/reward profiles.
STEM carries more volatility with a beta of 1.44 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
STEM generates stronger free cash flow (-10M), providing more financial flexibility.
Bottom Line
SO scores higher overall (56/100 vs 42/100). STEM offers better value entry with a 65.9% 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.
Stem Inc
UTILITIES · UTILITIES - RENEWABLE · USA
Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.
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