BHP Group Limited (BHP)vsSouthern Company (SO)
BHP
BHP Group Limited
$68.77
+0.82%
BASIC MATERIALS · Cap: $166.46B
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
Smart Verdict
WallStSmart Research — data-driven comparison
BHP Group Limited generates 83% more annual revenue ($53.99B vs $29.55B). BHP leads profitability with a 19.0% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. BHP earns a higher WallStSmart Score of 64/100 (C+).
BHP
Buy64
out of 100
Grade: C+
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.8%
Fair Value
$188.60
Current Price
$68.77
$119.83 discount
Margin of Safety
-254.9%
Fair Value
$26.66
Current Price
$94.61
$67.95 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 40.7%
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Attractively priced relative to earnings
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : BHP
The strongest argument for BHP centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
BHP profiles as a mature stock while SO is a value play — different risk/reward profiles.
BHP carries more volatility with a beta of 0.74 — expect wider price swings.
BHP is growing revenue faster at 10.8% — sustainability is the question.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
BHP scores higher overall (64/100 vs 54/100), backed by strong 19.0% margins and 10.8% 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.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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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