Southern Company (SO)vsEssential Utilities Inc (WTRG)
SO
Southern Company
$92.60
+1.22%
UTILITIES · Cap: $102.01B
WTRG
Essential Utilities Inc
$37.36
+1.66%
UTILITIES · Cap: $10.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1082% more annual revenue ($30.18B vs $2.55B). WTRG leads profitability with a 21.8% profit margin vs 14.5%. SO appears more attractively valued with a PEG of 2.53. WTRG earns a higher WallStSmart Score of 60/100 (C+).
SO
Buy56
out of 100
Grade: C
WTRG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Margin of Safety
+45.8%
Fair Value
$69.06
Current Price
$37.36
$31.70 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 25.8%
Strong operational efficiency at 36.1%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 23.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.8% and operating margin at 36.1%.
Bear Case : SO
The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Bear Case : WTRG
The primary concerns for WTRG are Debt/Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
SO profiles as a value stock while WTRG is a mature play — different risk/reward profiles.
WTRG carries more volatility with a beta of 0.65 — expect wider price swings.
WTRG is growing revenue faster at 10.0% — sustainability is the question.
WTRG generates stronger free cash flow (-22M), providing more financial flexibility.
Bottom Line
WTRG scores higher overall (60/100 vs 56/100), backed by strong 21.8% margins. Both earn "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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