WallStSmart

Southern Company (SO)vsConstellation Brands Inc Class A (STZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 215% more annual revenue ($29.55B vs $9.38B). SO leads profitability with a 14.7% profit margin vs 11.8%. SO appears more attractively valued with a PEG of 2.67. SO earns a higher WallStSmart Score of 54/100 (C-).

SO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0

STZ

Hold

50

out of 100

Grade: D+

Growth: 2.7Profit: 7.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 1.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-254.9%)

Margin of Safety

-254.9%

Fair Value

$26.66

Current Price

$94.61

$67.95 premium

UndervaluedFair: $26.66Overvalued
STZSignificantly Overvalued (-276.7%)

Margin of Safety

-276.7%

Fair Value

$43.32

Current Price

$151.56

$108.24 premium

UndervaluedFair: $43.32Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO2 strengths · Avg: 8.5/10
Market CapQuality
$105.91B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

STZ1 strengths · Avg: 10.0/10
Operating MarginProfitability
33.9%10/10

Strong operational efficiency at 33.9%

Areas to Watch

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.1%2/10

Earnings declined 22.1%

Free Cash FlowQuality
$-1.86B2/10

Negative free cash flow — burning cash

STZ4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Debt/EquityHealth
1.383/10

Elevated debt levels

PEG RatioValuation
5.462/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.8%2/10

Revenue declined 9.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.

Bull Case : STZ

The strongest argument for STZ centers on Operating Margin.

Bear Case : SO

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

Bear Case : STZ

The primary concerns for STZ are Altman Z-Score, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

SO profiles as a value stock while STZ is a declining play — different risk/reward profiles.

STZ carries more volatility with a beta of 0.42 — expect wider price swings.

SO is growing revenue faster at 10.1% — sustainability is the question.

STZ generates stronger free cash flow (371M), providing more financial flexibility.

Bottom Line

SO scores higher overall (54/100 vs 50/100) and 10.1% revenue growth. Both earn "Buy" and "Hold" 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.

Constellation Brands Inc Class A

CONSUMER DEFENSIVE · BEVERAGES - BREWERS · USA

Constellation Brands, Inc., headquartered in Victor, New York, is an American producer and marketer of beer, wine, and spirits.

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