WallStSmart

Southern Company (SO)vsXcel Energy Inc (XEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 104% more annual revenue ($30.18B vs $14.78B). SO leads profitability with a 14.5% profit margin vs 14.1%. XEL appears more attractively valued with a PEG of 2.33. SO earns a higher WallStSmart Score of 56/100 (C).

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 5.0

XEL

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 5.0Quality: 4.0
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-30.8%)

Margin of Safety

-30.8%

Fair Value

$73.33

Current Price

$93.51

$20.18 premium

UndervaluedFair: $73.33Overvalued

Intrinsic value data unavailable for XEL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO3 strengths · Avg: 8.3/10
Market CapQuality
$108.21B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

XEL2 strengths · Avg: 8.5/10
Market CapQuality
$51.54B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

SO3 concerns · Avg: 2.0/10
PEG RatioValuation
2.752/10

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

XEL4 concerns · Avg: 3.5/10
PEG RatioValuation
2.334/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

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

Bull Case : XEL

The strongest argument for XEL centers on Market Cap, Price/Book.

Bear Case : SO

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

Bear Case : XEL

The primary concerns for XEL are PEG Ratio, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

XEL carries more volatility with a beta of 0.44 — expect wider price swings.

SO is growing revenue faster at 8.0% — sustainability is the question.

XEL generates stronger free cash flow (-1.3B), providing more financial flexibility.

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

Bottom Line

SO scores higher overall (56/100 vs 54/100). 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.

Xcel Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Xcel Energy Inc. is a utility holding company based in Minneapolis, Minnesota, serving more than 3.7 million electric customers and 2.1 million natural gas customers in Minnesota, Michigan, Wisconsin, North Dakota, South Dakota, Colorado, Texas, and New Mexico as of 2019. It consists of four operating subsidiaries: Northern States Power-Minnesota, Northern States Power-Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Co.

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