Canadian Natural Resources Ltd (CNQ)vsSouthern Company (SO)
CNQ
Canadian Natural Resources Ltd
$49.02
+1.32%
ENERGY · Cap: $102.25B
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Natural Resources Ltd generates 31% more annual revenue ($38.76B vs $29.55B). CNQ leads profitability with a 27.9% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. CNQ earns a higher WallStSmart Score of 67/100 (B-).
CNQ
Strong Buy67
out of 100
Grade: B-
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.9%
Fair Value
$175.97
Current Price
$49.02
$126.95 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
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
1.5% revenue growth
3.7% earnings growth
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 : CNQ
The strongest argument for CNQ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 27.9% and operating margin at 19.6%.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : CNQ
The primary concerns for CNQ are Revenue Growth, EPS Growth, PEG Ratio.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
CNQ carries more volatility with a beta of 1.06 — expect wider price swings.
SO is growing revenue faster at 10.1% — sustainability is the question.
CNQ generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CNQ scores higher overall (67/100 vs 54/100), backed by strong 27.9% 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.
Canadian Natural Resources Ltd
ENERGY · OIL & GAS E&P · USA
Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, 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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