Pinnacle West Capital Corp (PNW)vsSouthern Company (SO)
PNW
Pinnacle West Capital Corp
$101.03
+0.21%
UTILITIES · Cap: $12.24B
SO
Southern Company
$92.69
-0.23%
UTILITIES · Cap: $107.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 453% more annual revenue ($30.18B vs $5.46B). SO leads profitability with a 15.4% profit margin vs 12.0%. SO appears more attractively valued with a PEG of 2.41. SO earns a higher WallStSmart Score of 66/100 (B-).
PNW
Buy55
out of 100
Grade: C-
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-27.4%
Fair Value
$75.40
Current Price
$101.03
$25.63 premium
Margin of Safety
-50.6%
Fair Value
$61.82
Current Price
$92.69
$30.87 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Expensive relative to growth rate
0.1% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PNW
The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% demonstrates continued momentum.
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 : PNW
The primary concerns for PNW are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
PNW carries more volatility with a beta of 0.42 — expect wider price swings.
PNW is growing revenue faster at 11.4% — sustainability is the question.
PNW generates stronger free cash flow (-393M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (66/100 vs 55/100), 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.
Pinnacle West Capital Corp
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.
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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