Southern Company (SO)vsWalmart Inc. (WMT)
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
WMT
Walmart Inc.
$130.43
+0.37%
CONSUMER DEFENSIVE · Cap: $1.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 2263% more annual revenue ($713.16B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 3.1%. SO appears more attractively valued with a PEG of 2.66. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
WMT
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.1%
Fair Value
$73.33
Current Price
$91.80
$18.47 premium
Margin of Safety
-90.0%
Fair Value
$68.54
Current Price
$130.43
$61.89 premium
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%
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Generating 6.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Trading at 10.4x book value
3.1% margin — thin
Operating margin of 4.6%
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.
Bull Case : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : WMT
The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 47.7x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
WMT carries more volatility with a beta of 0.65 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
WMT generates stronger free cash flow (6.1B), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (56/100 vs 43/100). 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.
Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
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