WallStSmart

Sherwin-Williams Co (SHW)vsSouthern Company (SO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 26% more annual revenue ($30.18B vs $23.94B). SO leads profitability with a 14.5% profit margin vs 10.9%. SO appears more attractively valued with a PEG of 2.66. SO earns a higher WallStSmart Score of 56/100 (C).

SHW

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.0Quality: 5.0

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHWUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$359.21

Current Price

$316.82

$42.39 discount

UndervaluedFair: $359.21Overvalued
SOSignificantly Overvalued (-26.1%)

Margin of Safety

-26.1%

Fair Value

$73.33

Current Price

$91.80

$18.47 premium

UndervaluedFair: $73.33Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHW2 strengths · Avg: 9.5/10
Return on EquityProfitability
60.7%10/10

Every $100 of equity generates 61 in profit

Market CapQuality
$78.98B9/10

Large-cap with strong market position

SO3 strengths · Avg: 8.3/10
Market CapQuality
$103.49B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

Areas to Watch

SHW3 concerns · Avg: 3.3/10
P/E RatioValuation
30.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
17.0x4/10

Trading at 17.0x book value

PEG RatioValuation
2.822/10

Expensive relative to growth rate

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.662/10

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 : SHW

The strongest argument for SHW centers on Return on Equity, Market Cap.

Bull Case : SO

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

Bear Case : SHW

The primary concerns for SHW are P/E Ratio, Price/Book, PEG Ratio.

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

SHW carries more volatility with a beta of 1.16 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

SHW generates stronger free cash flow (800,000), providing more financial flexibility.

Monitor SPECIALTY CHEMICALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SHW scores higher overall (56/100 vs 56/100). 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.

Sherwin-Williams Co

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.

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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