WallStSmart

H2O America (HTO)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 3543% more annual revenue ($30.18B vs $828.50M). SO leads profitability with a 15.4% profit margin vs 12.9%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

HTO

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 5.3Quality: 3.5
Piotroski: 1/9Altman Z: 0.68

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

HTOUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$74.04

Current Price

$62.66

$11.38 discount

UndervaluedFair: $74.04Overvalued
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

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

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

HTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Debt/EquityHealth
1.033/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.682/10

Expensive relative to growth rate

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 : HTO

The strongest argument for HTO centers on Price/Book, Operating Margin.

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 : HTO

The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.

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

HTO carries more volatility with a beta of 0.33 — expect wider price swings.

HTO is growing revenue faster at 6.2% — sustainability is the question.

HTO generates stronger free cash flow (-63M), providing more financial flexibility.

Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (66/100 vs 55/100), backed by strong 15.4% margins. HTO offers better value entry with a 29.8% margin of safety. 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.

H2O America

UTILITIES · UTILITIES - REGULATED WATER · USA

H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.

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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