Southern Company (SO)vsTXNM Energy, Inc. (TXNM)
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
TXNM
TXNM Energy, Inc.
$58.29
-0.36%
UTILITIES · Cap: $6.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1265% more annual revenue ($29.55B vs $2.17B). SO leads profitability with a 14.7% profit margin vs 7.0%. SO appears more attractively valued with a PEG of 2.67. SO earns a higher WallStSmart Score of 54/100 (C-).
SO
Buy54
out of 100
Grade: C-
TXNM
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-254.9%
Fair Value
$26.66
Current Price
$94.61
$67.95 premium
Margin of Safety
-489.7%
Fair Value
$10.06
Current Price
$58.29
$48.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 5.6% — below average capital efficiency
7.0% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bull Case : TXNM
The strongest argument for TXNM centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : TXNM
The primary concerns for TXNM are P/E Ratio, Return on Equity, Profit Margin.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.41 — expect wider price swings.
TXNM is growing revenue faster at 11.8% — sustainability is the question.
TXNM generates stronger free cash flow (-152M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (54/100 vs 49/100) and 10.1% revenue growth. 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.
TXNM Energy, Inc.
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.
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