Southern Company (SO)vsTransAlta Corp (TAC)
SO
Southern Company
$92.60
+1.22%
UTILITIES · Cap: $102.01B
TAC
TransAlta Corp
$12.68
-2.16%
UTILITIES · Cap: $4.23B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1264% more annual revenue ($30.18B vs $2.21B). SO leads profitability with a 14.5% profit margin vs -7.7%. SO appears more attractively valued with a PEG of 2.53. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
TAC
Avoid33
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Intrinsic value data unavailable for TAC.
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%
No standout strengths identified
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Trading at 11.3x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : TAC
TAC has a balanced fundamental profile.
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 : TAC
The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio. Debt-to-equity of 3.17 is elevated, increasing financial risk.
Key Dynamics to Monitor
SO profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.
TAC carries more volatility with a beta of 0.49 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
TAC generates stronger free cash flow (93M), providing more financial flexibility.
Bottom Line
SO scores higher overall (56/100 vs 33/100). Both earn "Buy" and "Avoid" 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.
TransAlta Corp
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.
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