Southern Company (SO)vsSouthwest Gas Holdings Inc (SWX)
SO
Southern Company
$87.02
-0.17%
UTILITIES · Cap: $100.28B
SWX
Southwest Gas Holdings Inc
$86.11
-0.91%
UTILITIES · Cap: $6.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1634% more annual revenue ($30.18B vs $1.74B). SWX leads profitability with a 31.4% profit margin vs 15.4%. SWX appears more attractively valued with a PEG of 1.86. SO earns a higher WallStSmart Score of 66/100 (B-).
SO
Strong Buy66
out of 100
Grade: B-
SWX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.02
$24.96 premium
Intrinsic value data unavailable for SWX.
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 29.6%
Earnings expanding 30.4% YoY
Keeps 31 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 24.2%
Earnings expanding 20.9% YoY
Areas to Watch
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Revenue declined 9.6%
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : SWX
The strongest argument for SWX centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 31.4% and operating margin at 24.2%.
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.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
SO profiles as a value stock while SWX is a declining play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.56 — expect wider price swings.
SO is growing revenue faster at 0.1% — sustainability is the question.
SWX generates stronger free cash flow (-174M), providing more financial flexibility.
Bottom Line
SO scores higher overall (66/100 vs 65/100), backed by strong 15.4% margins. Both earn "Strong Buy" and "Strong 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.
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.
Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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