Southern Company (SO)vsSempra Energy (SRE)
SO
Southern Company
$87.17
-0.66%
UTILITIES · Cap: $100.28B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 123% more annual revenue ($30.18B vs $13.55B). SRE leads profitability with a 16.8% profit margin vs 15.4%. SRE appears more attractively valued with a PEG of 0.70. SRE earns a higher WallStSmart Score of 68/100 (B-).
SO
Strong Buy66
out of 100
Grade: B-
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-40.5%
Fair Value
$62.06
Current Price
$87.17
$25.11 premium
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : SRE
The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 suggests the stock is reasonably priced for its growth.
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.
Bear Case : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
SO profiles as a value stock while SRE is a declining play — different risk/reward profiles.
SRE carries more volatility with a beta of 0.56 — expect wider price swings.
SO is growing revenue faster at 0.1% — sustainability is the question.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Bottom Line
SRE scores higher overall (68/100 vs 66/100), backed by strong 16.8% margins. Both earn "Strong Buy" and "Strong 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.
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.
Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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