WallStSmart

MGE Energy Inc (MGEE)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 3912% more annual revenue ($30.18B vs $752.13M). MGEE leads profitability with a 19.9% profit margin vs 15.4%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).

MGEE

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.20

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

Intrinsic value data unavailable for MGEE.

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

MGEE3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

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

MGEE4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.122/10

Expensive relative to growth rate

Free Cash FlowQuality
$-41.63M2/10

Negative free cash flow — burning cash

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 : MGEE

The strongest argument for MGEE centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 22.7%.

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 : MGEE

The primary concerns for MGEE are Revenue Growth, Piotroski F-Score, PEG Ratio.

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

MGEE carries more volatility with a beta of 0.70 — expect wider price swings.

MGEE is growing revenue faster at 1.1% — sustainability is the question.

MGEE generates stronger free cash flow (-42M), providing more financial flexibility.

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

Bottom Line

SO scores higher overall (66/100 vs 61/100), backed by strong 15.4% margins. 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.

MGE Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.

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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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