WallStSmart

Hewlett Packard Enterprise Co (HPE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hewlett Packard Enterprise Co generates 29% more annual revenue ($38.79B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 4.0%. HPE appears more attractively valued with a PEG of 0.85. HPE earns a higher WallStSmart Score of 59/100 (C).

HPE

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 5.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.69

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HPE.

SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HPE4 strengths · Avg: 8.8/10
Revenue GrowthGrowth
40.0%10/10

Revenue surging 40.0% year-over-year

Market CapQuality
$63.79B9/10

Large-cap with strong market position

PEG RatioValuation
0.858/10

Growing faster than its price suggests

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

HPE4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.0%3/10

ROE of 6.0% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.0x2/10

Premium valuation, high expectations priced in

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HPE

The strongest argument for HPE centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 40.0% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bear Case : HPE

The primary concerns for HPE are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 45.0x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

HPE profiles as a hypergrowth stock while SO is a value play — different risk/reward profiles.

HPE carries more volatility with a beta of 1.45 — expect wider price swings.

HPE is growing revenue faster at 40.0% — sustainability is the question.

HPE generates stronger free cash flow (827M), providing more financial flexibility.

Bottom Line

HPE scores higher overall (59/100 vs 56/100) and 40.0% revenue growth. 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.

Hewlett Packard Enterprise Co

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

The Hewlett Packard Enterprise Company (HPE) is an American multinational enterprise information technology company based in Houston, Texas, United States.

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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