WallStSmart

Southern Company (SO)vsThe Travelers Companies Inc (TRV)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The Travelers Companies Inc generates 62% more annual revenue ($48.94B vs $30.18B). TRV leads profitability with a 15.5% profit margin vs 14.5%. TRV appears more attractively valued with a PEG of 2.36. TRV earns a higher WallStSmart Score of 72/100 (B).

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 5.0

TRV

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 8.0Value: 6.3Quality: 5.0
Piotroski: 4/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-26.1%)

Margin of Safety

-26.1%

Fair Value

$73.33

Current Price

$91.80

$18.47 premium

UndervaluedFair: $73.33Overvalued

Intrinsic value data unavailable for TRV.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO3 strengths · Avg: 8.3/10
Market CapQuality
$103.49B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

TRV6 strengths · Avg: 9.2/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
357.6%10/10

Earnings expanding 357.6% YoY

Market CapQuality
$63.57B9/10

Large-cap with strong market position

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Areas to Watch

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

TRV3 concerns · Avg: 3.3/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Altman Z-ScoreHealth
0.652/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bull Case : TRV

The strongest argument for TRV centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 15.5% and operating margin at 18.7%.

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Bear Case : TRV

The primary concerns for TRV are PEG Ratio, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

TRV carries more volatility with a beta of 0.51 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

TRV generates stronger free cash flow (2.2B), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TRV scores higher overall (72/100 vs 56/100), backed by strong 15.5% 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.

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.

The Travelers Companies Inc

FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA

The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.

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