Southern Company (SO)vsTransAlta Corp (TAC)
SO
Southern Company
$86.71
+0.61%
UTILITIES · Cap: $100.28B
TAC
TransAlta Corp
$11.95
+3.91%
UTILITIES · Cap: $3.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1232% more annual revenue ($30.18B vs $2.27B). SO leads profitability with a 15.4% profit margin vs -1.0%. SO appears more attractively valued with a PEG of 2.07. SO earns a higher WallStSmart Score of 66/100 (B-).
SO
Strong Buy66
out of 100
Grade: B-
TAC
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-38.4%
Fair Value
$62.12
Current Price
$86.71
$24.59 premium
Intrinsic value data unavailable for TAC.
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
Strong operational efficiency at 33.3%
Areas to Watch
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Weak financial health signals
Expensive relative to growth rate
ROE of -12.1% — below average capital efficiency
Earnings declined 71.6%
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 : TAC
The strongest argument for TAC centers on Operating Margin. Revenue growth of 12.5% demonstrates continued momentum.
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 : TAC
The primary concerns for TAC are Piotroski F-Score, PEG Ratio, Return on Equity. Debt-to-equity of 2.38 is elevated, increasing financial risk.
Key Dynamics to Monitor
SO profiles as a value stock while TAC is a turnaround play — different risk/reward profiles.
TAC carries more volatility with a beta of 0.46 — expect wider price swings.
TAC is growing revenue faster at 12.5% — sustainability is the question.
TAC generates stronger free cash flow (17M), providing more financial flexibility.
Bottom Line
SO scores higher overall (66/100 vs 43/100), backed by strong 15.4% margins. Both earn "Strong 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.
TransAlta Corp
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.
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