WallStSmart

Public Service Enterprise Group Inc (PEG)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 136% more annual revenue ($30.18B vs $12.79B). PEG leads profitability with a 17.7% profit margin vs 14.5%. SO appears more attractively valued with a PEG of 2.53. PEG earns a higher WallStSmart Score of 66/100 (B-).

PEG

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 5/9Altman Z: 0.96

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

PEGSignificantly Overvalued (-68.8%)

Margin of Safety

-68.8%

Fair Value

$49.84

Current Price

$79.48

$29.64 premium

UndervaluedFair: $49.84Overvalued
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

PEG5 strengths · Avg: 8.0/10
P/E RatioValuation
17.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.4%8/10

Strong operational efficiency at 28.4%

Revenue GrowthGrowth
19.4%8/10

19.4% revenue growth

EPS GrowthGrowth
25.4%8/10

Earnings expanding 25.4% YoY

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

PEG2 concerns · Avg: 2.0/10
PEG RatioValuation
3.972/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.962/10

Distress zone — elevated risk

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 : PEG

The strongest argument for PEG centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 28.4%. Revenue growth of 19.4% demonstrates continued momentum.

Bull Case : SO

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

Bear Case : PEG

The primary concerns for PEG are PEG Ratio, Altman Z-Score.

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

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

PEG carries more volatility with a beta of 0.53 — expect wider price swings.

PEG is growing revenue faster at 19.4% — sustainability is the question.

PEG generates stronger free cash flow (81M), providing more financial flexibility.

Bottom Line

PEG scores higher overall (66/100 vs 56/100), backed by strong 17.7% margins and 19.4% revenue growth. 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.

Public Service Enterprise Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

The Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey.

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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