WallStSmart

Southern Company (SO)vsWest Pharmaceutical Services Inc (WST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 837% more annual revenue ($30.18B vs $3.22B). WST leads profitability with a 16.9% profit margin vs 14.5%. SO appears more attractively valued with a PEG of 2.53. WST earns a higher WallStSmart Score of 65/100 (C+).

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65

WST

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 2.7Quality: 8.5
Piotroski: 4/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued
WSTSignificantly Overvalued (-56.0%)

Margin of Safety

-56.0%

Fair Value

$157.79

Current Price

$314.50

$156.71 premium

UndervaluedFair: $157.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

WST5 strengths · Avg: 9.0/10
EPS GrowthGrowth
56.1%10/10

Earnings expanding 56.1% YoY

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

Revenue GrowthGrowth
21.0%8/10

Revenue surging 21.0% year-over-year

Areas to Watch

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

WST2 concerns · Avg: 2.0/10
PEG RatioValuation
3.162/10

Expensive relative to growth rate

P/E RatioValuation
44.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bull Case : WST

The strongest argument for WST centers on EPS Growth, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 16.9% and operating margin at 21.7%. Revenue growth of 21.0% demonstrates continued momentum.

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 : WST

The primary concerns for WST are PEG Ratio, P/E Ratio. A P/E of 44.1x leaves little room for execution misses.

Key Dynamics to Monitor

SO profiles as a value stock while WST is a growth play — different risk/reward profiles.

WST carries more volatility with a beta of 1.18 — expect wider price swings.

WST is growing revenue faster at 21.0% — sustainability is the question.

WST generates stronger free cash flow (47M), providing more financial flexibility.

Bottom Line

WST scores higher overall (65/100 vs 56/100), backed by strong 16.9% margins and 21.0% revenue growth. Both earn "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.

West Pharmaceutical Services Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

West Pharmaceutical Services, Inc. is a designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company is headquartered in Exton, Pennsylvania.

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