WallStSmart

Southern Company (SO)vsUSA Rare Earth, Inc. (USAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SO leads profitability with a 14.7% profit margin vs 0.0%. SO earns a higher WallStSmart Score of 54/100 (C-).

SO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.7Quality: 5.0

USAR

Avoid

22

out of 100

Grade: F

Growth: 4.3Profit: 3.0Value: 5.0Quality: 5.3
Piotroski: 3/9Altman Z: -1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-254.9%)

Margin of Safety

-254.9%

Fair Value

$26.66

Current Price

$94.61

$67.95 premium

UndervaluedFair: $26.66Overvalued

Intrinsic value data unavailable for USAR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO2 strengths · Avg: 8.5/10
Market CapQuality
$105.91B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

USAR0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-22.1%2/10

Earnings declined 22.1%

Free Cash FlowQuality
$-1.86B2/10

Negative free cash flow — burning cash

USAR4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.

Bull Case : USAR

USAR has a balanced fundamental profile.

Bear Case : SO

The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.

Bear Case : USAR

The primary concerns for USAR are Revenue Growth, EPS Growth, Profit Margin.

Key Dynamics to Monitor

USAR carries more volatility with a beta of 1.08 — expect wider price swings.

SO is growing revenue faster at 10.1% — sustainability is the question.

USAR generates stronger free cash flow (-49M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SO scores higher overall (54/100 vs 22/100) and 10.1% revenue growth. Both earn "Buy" and "Avoid" 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.

USA Rare Earth, Inc.

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals. The company is headquartered in Stillwater, Oklahoma.

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