WallStSmart

Edison International (EIX)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 53% more annual revenue ($29.55B vs $19.32B). EIX leads profitability with a 23.1% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. EIX earns a higher WallStSmart Score of 85/100 (A).

EIX

Exceptional Buy

85

out of 100

Grade: A

Growth: 6.0Profit: 8.0Value: 7.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.68

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

EIXUndervalued (+87.6%)

Margin of Safety

+87.6%

Fair Value

$540.54

Current Price

$71.19

$469.35 discount

UndervaluedFair: $540.54Overvalued
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

EIX6 strengths · Avg: 9.3/10
P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Operating MarginProfitability
35.9%10/10

Strong operational efficiency at 35.9%

Revenue GrowthGrowth
30.8%10/10

Revenue surging 30.8% year-over-year

Return on EquityProfitability
24.1%9/10

Every $100 of equity generates 24 in profit

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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

EIX4 concerns · Avg: 2.5/10
EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

PEG RatioValuation
3.372/10

Expensive relative to growth rate

Free Cash FlowQuality
$-319.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

Distress zone — elevated risk

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 : EIX

The strongest argument for EIX centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 23.1% and operating margin at 35.9%. Revenue growth of 30.8% demonstrates continued momentum.

Bull Case : SO

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

Bear Case : EIX

The primary concerns for EIX are EPS Growth, PEG Ratio, Free Cash Flow. Debt-to-equity of 2.42 is elevated, increasing financial risk.

Bear Case : SO

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

Key Dynamics to Monitor

EIX profiles as a growth stock while SO is a value play — different risk/reward profiles.

EIX carries more volatility with a beta of 0.78 — expect wider price swings.

EIX is growing revenue faster at 30.8% — sustainability is the question.

EIX generates stronger free cash flow (-319M), providing more financial flexibility.

Bottom Line

EIX scores higher overall (85/100 vs 54/100), backed by strong 23.1% margins and 30.8% revenue growth. Both earn "Exceptional 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.

Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

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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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