Southern Company (SO)vsSempra Energy (SRE)
SO
Southern Company
$93.51
+3.41%
UTILITIES · Cap: $105.39B
SRE
Sempra Energy
$92.64
-0.28%
UTILITIES · Cap: $60.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 116% more annual revenue ($29.55B vs $13.70B). SO leads profitability with a 14.7% profit margin vs 13.4%. SRE appears more attractively valued with a PEG of 0.83. SRE earns a higher WallStSmart Score of 56/100 (C).
SO
Buy54
out of 100
Grade: C-
SRE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-30.6%
Fair Value
$71.61
Current Price
$93.51
$21.90 premium
Margin of Safety
-31.9%
Fair Value
$69.13
Current Price
$92.64
$23.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 27.7%
Areas to Watch
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 5.2% — below average capital efficiency
Weak financial health signals
Revenue declined 0.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bull Case : SRE
The strongest argument for SRE centers on Market Cap, PEG Ratio, Price/Book. PEG of 0.83 suggests the stock is reasonably priced for its growth.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.
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 0.68 — expect wider price swings.
SO is growing revenue faster at 10.1% — sustainability is the question.
SO generates stronger free cash flow (-1.9B), providing more financial flexibility.
Bottom Line
SRE scores higher overall (56/100 vs 54/100). 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.
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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