WallStSmart

California Water Service Group (CWT)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 2855% more annual revenue ($29.55B vs $1.00B). SO leads profitability with a 14.7% profit margin vs 12.8%. CWT appears more attractively valued with a PEG of 2.12. SO earns a higher WallStSmart Score of 54/100 (C-).

CWT

Hold

47

out of 100

Grade: D+

Growth: 3.3Profit: 5.0Value: 6.0Quality: 2.8
Piotroski: 1/9Altman Z: 0.74

SO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CWTUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$62.85

Current Price

$42.24

$20.61 discount

UndervaluedFair: $62.85Overvalued
SOSignificantly Overvalued (-35.0%)

Margin of Safety

-35.0%

Fair Value

$71.61

Current Price

$96.70

$25.09 premium

UndervaluedFair: $71.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CWT1 strengths · Avg: 10.0/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

SO1 strengths · Avg: 9.0/10
Market CapQuality
$109.01B9/10

Large-cap with strong market position

Areas to Watch

CWT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Return on EquityProfitability
7.7%3/10

ROE of 7.7% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.0%2/10

Revenue declined 1.0%

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

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 : CWT

The strongest argument for CWT centers on Price/Book.

Bull Case : SO

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

Bear Case : CWT

The primary concerns for CWT are PEG Ratio, Return on Equity, Piotroski F-Score.

Bear Case : SO

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

Key Dynamics to Monitor

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

CWT carries more volatility with a beta of 0.61 — expect wider price swings.

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

CWT generates stronger free cash flow (-104M), providing more financial flexibility.

Bottom Line

SO scores higher overall (54/100 vs 47/100) and 10.1% revenue growth. CWT offers better value entry with a 29.8% margin of safety. Both earn "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.

California Water Service Group

UTILITIES · UTILITIES - REGULATED WATER · USA

California Water Service Group provides public water and related services in California, Washington, New Mexico and Hawaii. The company is headquartered in San Jose, California.

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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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