WallStSmart

Southern Company (SO)vsTalen Energy Corporation (TLN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 707% more annual revenue ($30.18B vs $3.74B). SO leads profitability with a 15.4% profit margin vs -5.0%. SO earns a higher WallStSmart Score of 66/100 (B-).

SO

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 7.5Value: 4.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.65

TLN

Hold

42

out of 100

Grade: D

Growth: 8.0Profit: 2.5Value: 5.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-49.7%)

Margin of Safety

-49.7%

Fair Value

$61.91

Current Price

$92.79

$30.88 premium

UndervaluedFair: $61.91Overvalued

Intrinsic value data unavailable for TLN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO4 strengths · Avg: 8.3/10
Market CapQuality
$107.10B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

EPS GrowthGrowth
30.4%8/10

Earnings expanding 30.4% YoY

TLN2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
111.2%10/10

Revenue surging 111.2% year-over-year

EPS GrowthGrowth
34.5%8/10

Earnings expanding 34.5% YoY

Areas to Watch

SO4 concerns · Avg: 3.5/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

Debt/EquityHealth
1.953/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

TLN4 concerns · Avg: 2.8/10
Price/BookValuation
10.8x4/10

Trading at 10.8x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Return on EquityProfitability
-11.4%2/10

ROE of -11.4% — below average capital efficiency

Free Cash FlowQuality
$-154.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : TLN

The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 111.2% 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 : TLN

The primary concerns for TLN are Price/Book, Piotroski F-Score, Return on Equity. Debt-to-equity of 5.92 is elevated, increasing financial risk.

Key Dynamics to Monitor

SO profiles as a value stock while TLN is a hypergrowth play — different risk/reward profiles.

TLN carries more volatility with a beta of 1.67 — expect wider price swings.

TLN is growing revenue faster at 111.2% — sustainability is the question.

TLN generates stronger free cash flow (-154M), providing more financial flexibility.

Bottom Line

SO scores higher overall (66/100 vs 42/100), 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.

Talen Energy Corporation

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

Talen Energy Corporation (Ticker: TLN) is a prominent player in the U.S. power generation and infrastructure sector, committed to delivering reliable energy solutions through a robust portfolio that includes both traditional and renewable resources. The company emphasizes environmental sustainability and grid resilience, adapting to the increasing demand for electricity in a rapidly evolving energy landscape. With a strategic focus on innovation and advanced technology, Talen is well-positioned to capitalize on the transition to cleaner energy alternatives, making it an attractive investment opportunity for institutional investors.

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