WallStSmart

Companhia Energetica de Minas Gerais CEMIG Pref ADR (CIG)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia Energetica de Minas Gerais CEMIG Pref ADR generates 45% more annual revenue ($43.74B vs $30.18B). SO leads profitability with a 15.4% profit margin vs 10.5%. CIG appears more attractively valued with a PEG of 0.33. SO earns a higher WallStSmart Score of 66/100 (B-).

CIG

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 6.5Value: 8.3Quality: 5.0
Piotroski: 3/9Altman Z: 1.68

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CIG.

SOSignificantly Overvalued (-40.5%)

Margin of Safety

-40.5%

Fair Value

$62.06

Current Price

$87.17

$25.11 premium

UndervaluedFair: $62.06Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CIG3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

SO4 strengths · Avg: 8.3/10
Market CapQuality
$100.28B9/10

Large-cap with strong market position

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

Areas to Watch

CIG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-20.4%2/10

Earnings declined 20.4%

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Debt/EquityHealth
1.953/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CIG

The strongest argument for CIG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.33 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. Profitability is solid with margins at 15.4% and operating margin at 29.6%.

Bear Case : CIG

The primary concerns for CIG are Revenue Growth, Altman Z-Score, 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

SO carries more volatility with a beta of 0.32 — expect wider price swings.

CIG is growing revenue faster at 3.4% — sustainability is the question.

CIG generates stronger free cash flow (525M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (66/100 vs 60/100), 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.

Companhia Energetica de Minas Gerais CEMIG Pref ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, Brazil.

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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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