Southern Company (SO)vsEssential Utilities Inc (WTRG)
SO
Southern Company
$87.02
-0.17%
UTILITIES · Cap: $100.28B
WTRG
Essential Utilities Inc
$41.07
-1.75%
UTILITIES · Cap: $11.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1075% more annual revenue ($30.18B vs $2.57B). WTRG leads profitability with a 21.6% profit margin vs 15.4%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).
SO
Strong Buy66
out of 100
Grade: B-
WTRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.02
$24.96 premium
Margin of Safety
+45.1%
Fair Value
$68.22
Current Price
$41.07
$27.15 discount
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
Strong operational efficiency at 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
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 : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Bear Case : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
WTRG carries more volatility with a beta of 0.63 — expect wider price swings.
WTRG is growing revenue faster at 3.1% — sustainability is the question.
WTRG generates stronger free cash flow (-51M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (66/100 vs 56/100), backed by strong 15.4% margins. WTRG offers better value entry with a 45.1% margin of safety. 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.
Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
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