Southern Company (SO)vsConstellation Brands Inc Class A (STZ)
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
STZ
Constellation Brands Inc Class A
$148.21
-1.36%
CONSUMER DEFENSIVE · Cap: $25.88B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 230% more annual revenue ($30.18B vs $9.14B). STZ leads profitability with a 18.5% profit margin vs 14.5%. SO appears more attractively valued with a PEG of 2.66. STZ earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
STZ
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.0%
Fair Value
$73.42
Current Price
$91.80
$18.38 premium
Intrinsic value data unavailable for STZ.
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 25.8%
Every $100 of equity generates 23 in profit
Attractively priced relative to earnings
Strong operational efficiency at 26.7%
Areas to Watch
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Grey zone — moderate risk
Elevated debt levels
Expensive relative to growth rate
Revenue declined 11.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : STZ
The strongest argument for STZ centers on Return on Equity, P/E Ratio, Operating Margin. Profitability is solid with margins at 18.5% and operating margin at 26.7%.
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 8.0% — sustainability is the question.
STZ generates stronger free cash flow (344M), providing more financial flexibility.
Bottom Line
SO 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.
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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