Southern Company (SO)vsTXNM Energy, Inc. (TXNM)
SO
Southern Company
$93.43
+0.87%
UTILITIES · Cap: $106.32B
TXNM
TXNM Energy, Inc.
$59.33
+0.08%
UTILITIES · Cap: $6.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 1279% more annual revenue ($30.18B vs $2.19B). SO leads profitability with a 14.5% profit margin vs 6.7%. SO appears more attractively valued with a PEG of 2.67. SO earns a higher WallStSmart Score of 56/100 (C).
SO
Buy56
out of 100
Grade: C
TXNM
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-48.3%
Fair Value
$62.79
Current Price
$93.43
$30.64 premium
Intrinsic value data unavailable for TXNM.
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%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Weak financial health signals
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
4.6% revenue growth
ROE of 4.2% — below average capital efficiency
6.7% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
Bull Case : TXNM
The strongest argument for TXNM centers on Altman Z-Score, Debt/Equity, Price/Book.
Bear Case : SO
The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.
Bear Case : TXNM
The primary concerns for TXNM are Revenue Growth, Return on Equity, Profit Margin. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
SO carries more volatility with a beta of 0.34 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
TXNM generates stronger free cash flow (-160M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (56/100 vs 49/100). 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.
TXNM Energy, Inc.
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.
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