Southern Company (SO)vsTXNM Energy, Inc. (TXNM)
SO
Southern Company
$92.69
-0.23%
UTILITIES · Cap: $107.10B
TXNM
TXNM Energy, Inc.
$57.60
+0.19%
UTILITIES · Cap: $6.41B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1251% more annual revenue ($30.18B vs $2.23B). SO leads profitability with a 15.4% profit margin vs 8.8%. SO appears more attractively valued with a PEG of 2.41. SO earns a higher WallStSmart Score of 66/100 (B-).
SO
Strong Buy66
out of 100
Grade: B-
TXNM
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.6%
Fair Value
$61.82
Current Price
$92.69
$30.87 premium
Intrinsic value data unavailable for TXNM.
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
Earnings expanding 190.9% YoY
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 23.7%
Areas to Watch
Expensive relative to growth rate
0.1% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 4.2% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
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 : TXNM
The strongest argument for TXNM centers on EPS Growth, Altman Z-Score, Debt/Equity.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Bear Case : TXNM
The primary concerns for TXNM are P/E Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.33 — expect wider price swings.
TXNM is growing revenue faster at 9.2% — sustainability is the question.
TXNM generates stronger free cash flow (-160M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (66/100 vs 63/100), backed by strong 15.4% 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.
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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