WallStSmart

Atmos Energy Corporation (ATO)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 507% more annual revenue ($29.55B vs $4.87B). ATO leads profitability with a 25.7% profit margin vs 14.7%. ATO appears more attractively valued with a PEG of 2.23. ATO earns a higher WallStSmart Score of 64/100 (C+).

ATO

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 8.0Value: 5.0Quality: 4.3
Piotroski: 2/9Altman Z: 1.10

SO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ATO.

SOSignificantly Overvalued (-35.0%)

Margin of Safety

-35.0%

Fair Value

$71.61

Current Price

$96.70

$25.09 premium

UndervaluedFair: $71.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATO3 strengths · Avg: 9.0/10
Operating MarginProfitability
38.9%10/10

Strong operational efficiency at 38.9%

Profit MarginProfitability
25.7%9/10

Keeps 26 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

SO1 strengths · Avg: 9.0/10
Market CapQuality
$109.01B9/10

Large-cap with strong market position

Areas to Watch

ATO4 concerns · Avg: 2.8/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-725.29M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.102/10

Distress zone — elevated risk

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.1%2/10

Earnings declined 22.1%

Free Cash FlowQuality
$-1.86B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ATO

The strongest argument for ATO centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 25.7% and operating margin at 38.9%. Revenue growth of 14.2% demonstrates continued momentum.

Bull Case : SO

The strongest argument for SO centers on Market Cap. Revenue growth of 10.1% demonstrates continued momentum.

Bear Case : ATO

The primary concerns for ATO are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

ATO profiles as a mature stock while SO is a value play — different risk/reward profiles.

ATO carries more volatility with a beta of 0.69 — expect wider price swings.

ATO is growing revenue faster at 14.2% — sustainability is the question.

ATO generates stronger free cash flow (-725M), providing more financial flexibility.

Bottom Line

ATO scores higher overall (64/100 vs 54/100), backed by strong 25.7% margins and 14.2% revenue growth. 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.

Atmos Energy Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

Atmos Energy Corporation, headquartered in Dallas, Texas, is one of the United States' largest natural-gas-only distributors.

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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