WallStSmart

Consolidated Water Co Ltd (CWCO)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 23549% more annual revenue ($30.18B vs $127.61M). SO leads profitability with a 15.4% profit margin vs 12.7%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

CWCO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 5.5Value: 4.0Quality: 8.5
Piotroski: 3/9Altman Z: 6.49

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

CWCOSignificantly Overvalued (-16.2%)

Margin of Safety

-16.2%

Fair Value

$32.03

Current Price

$28.16

$3.87 premium

UndervaluedFair: $32.03Overvalued
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

CWCO3 strengths · Avg: 9.3/10
Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.4910/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.0x8/10

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

CWCO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.254/10

Expensive relative to growth rate

P/E RatioValuation
27.6x4/10

Moderate valuation

Market CapQuality
$450.92M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

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 : CWCO

The strongest argument for CWCO centers on Debt/Equity, Altman Z-Score, Price/Book.

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 : CWCO

The primary concerns for CWCO are PEG Ratio, P/E Ratio, Market Cap.

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

CWCO profiles as a declining stock while SO is a value play — different risk/reward profiles.

CWCO carries more volatility with a beta of 0.52 — expect wider price swings.

SO is growing revenue faster at 0.1% — sustainability is the question.

CWCO generates stronger free cash flow (9M), providing more financial flexibility.

Bottom Line

SO scores higher overall (66/100 vs 44/100), backed by strong 15.4% margins. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Consolidated Water Co Ltd

UTILITIES · UTILITIES - REGULATED WATER · USA

Consolidated Water Co. Ltd. designs, builds, manages and operates water treatment and production plants primarily in the Cayman Islands, the Bahamas and the United States. The company is headquartered in Grand Cayman, the Cayman Islands.

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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