WallStSmart

CME Group Inc (CME)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 354% more annual revenue ($29.55B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. CME earns a higher WallStSmart Score of 63/100 (C+).

CME

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 7.3Quality: 5.5
Piotroski: 1/9

SO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CMEUndervalued (+43.8%)

Margin of Safety

+43.8%

Fair Value

$522.76

Current Price

$293.93

$228.83 discount

UndervaluedFair: $522.76Overvalued
SOSignificantly Overvalued (-254.9%)

Margin of Safety

-254.9%

Fair Value

$26.66

Current Price

$94.61

$67.95 premium

UndervaluedFair: $26.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CME6 strengths · Avg: 9.0/10
Profit MarginProfitability
62.6%10/10

Keeps 63 of every $100 in revenue as profit

Operating MarginProfitability
63.8%10/10

Strong operational efficiency at 63.8%

Market CapQuality
$105.67B9/10

Large-cap with strong market position

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

Free Cash FlowQuality
$1.10B8/10

Generating 1.1B in free cash flow

SO2 strengths · Avg: 8.5/10
Market CapQuality
$105.91B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

CME3 concerns · Avg: 3.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
5.842/10

Expensive relative to growth rate

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.672/10

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 : CME

The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 62.6% and operating margin at 63.8%.

Bull Case : SO

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

Bear Case : CME

The primary concerns for CME are P/E Ratio, Piotroski F-Score, PEG Ratio.

Bear Case : SO

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

Key Dynamics to Monitor

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

SO carries more volatility with a beta of 0.41 — expect wider price swings.

SO is growing revenue faster at 10.1% — sustainability is the question.

CME generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

CME scores higher overall (63/100 vs 54/100), backed by strong 62.6% margins. 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.

CME Group Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.

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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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