Southern Company (SO)vsWells Fargo & Company (WFC)
SO
Southern Company
$94.61
+0.67%
UTILITIES · Cap: $105.91B
WFC
Wells Fargo & Company
$80.26
+0.82%
FINANCIAL SERVICES · Cap: $245.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 171% more annual revenue ($80.04B vs $29.55B). WFC leads profitability with a 26.7% profit margin vs 14.7%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 72/100 (B).
SO
Buy54
out of 100
Grade: C-
WFC
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-254.9%
Fair Value
$26.66
Current Price
$94.61
$67.95 premium
Margin of Safety
+53.8%
Fair Value
$173.78
Current Price
$80.26
$93.52 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Generating 4.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bull Case : WFC
The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Bear Case : WFC
The primary concerns for WFC are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
WFC carries more volatility with a beta of 1.07 — expect wider price swings.
SO is growing revenue faster at 10.1% — sustainability is the question.
WFC generates stronger free cash flow (4.1B), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WFC scores higher overall (72/100 vs 54/100), backed by strong 26.7% margins. Both earn "Strong Buy" and "Buy" 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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