American Water Works (AWK)vsSouthern Company (SO)
AWK
American Water Works
$137.69
-1.54%
UTILITIES · Cap: $27.90B
SO
Southern Company
$87.17
-0.66%
UTILITIES · Cap: $100.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 471% more annual revenue ($30.18B vs $5.28B). AWK leads profitability with a 21.3% 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-).
AWK
Buy64
out of 100
Grade: C+
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.4%
Fair Value
$101.07
Current Price
$137.69
$36.62 premium
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.17
$25.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 40.7%.
Bull 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%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
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.
Key Dynamics to Monitor
AWK profiles as a mature stock while SO is a value play — different risk/reward profiles.
AWK carries more volatility with a beta of 0.58 — expect wider price swings.
AWK is growing revenue faster at 6.2% — sustainability is the question.
AWK generates stronger free cash flow (-258M), providing more financial flexibility.
Bottom Line
SO scores higher overall (66/100 vs 64/100), backed by strong 15.4% margins. 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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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