Southern Company (SO)vsTarget Corporation (TGT)
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
TGT
Target Corporation
$125.25
-0.50%
CONSUMER DEFENSIVE · Cap: $56.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Target Corporation generates 247% more annual revenue ($104.78B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 3.5%. TGT appears more attractively valued with a PEG of 2.44. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
TGT
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-26.1%
Fair Value
$73.33
Current Price
$91.80
$18.47 premium
Margin of Safety
+33.2%
Fair Value
$171.51
Current Price
$125.25
$46.26 discount
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%
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Attractively priced relative to earnings
Generating 2.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Expensive relative to growth rate
3.5% margin — thin
Operating margin of 4.9%
Revenue declined 1.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : TGT
The strongest argument for TGT centers on Market Cap, Return on Equity, P/E Ratio.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : TGT
The primary concerns for TGT are PEG Ratio, Profit Margin, Operating Margin. Thin 3.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
TGT carries more volatility with a beta of 1.01 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
TGT generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (56/100 vs 48/100). TGT offers better value entry with a 33.2% margin of safety. 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.
Target Corporation
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
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