The AES Corporation (AES)vsSouthern Company (SO)
AES
The AES Corporation
$14.67
-0.41%
UTILITIES · Cap: $10.47B
SO
Southern Company
$92.60
+1.22%
UTILITIES · Cap: $102.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 142% more annual revenue ($30.18B vs $12.49B). SO leads profitability with a 14.5% profit margin vs 10.8%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 71/100 (B).
AES
Strong Buy71
out of 100
Grade: B
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.1%
Fair Value
$11.41
Current Price
$14.67
$3.26 premium
Margin of Safety
-47.7%
Fair Value
$62.70
Current Price
$92.60
$29.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 951.0% YoY
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AES
The strongest argument for AES centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 1.09 suggests the stock is reasonably priced for its growth.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bear Case : AES
The primary concerns for AES are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 7.01 is elevated, increasing financial risk.
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.
Key Dynamics to Monitor
AES carries more volatility with a beta of 0.95 — expect wider price swings.
AES is growing revenue faster at 8.7% — sustainability is the question.
AES generates stronger free cash flow (-565M), providing more financial flexibility.
Monitor UTILITIES - DIVERSIFIED industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AES scores higher overall (71/100 vs 56/100). 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.
The AES Corporation
UTILITIES · UTILITIES - DIVERSIFIED · USA
The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.
Visit Website →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.
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