WallStSmart

Southern Company (SO)vsXcel Energy Inc (XEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 101% more annual revenue ($29.55B vs $14.67B). SO leads profitability with a 14.7% profit margin vs 13.8%. XEL appears more attractively valued with a PEG of 2.17. XEL earns a higher WallStSmart Score of 62/100 (C+).

SO

Buy

54

out of 100

Grade: C-

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

XEL

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 10.0Quality: 5.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-250.3%)

Margin of Safety

-250.3%

Fair Value

$26.66

Current Price

$93.39

$66.73 premium

UndervaluedFair: $26.66Overvalued
XELUndervalued (+43.1%)

Margin of Safety

+43.1%

Fair Value

$137.07

Current Price

$76.77

$60.30 discount

UndervaluedFair: $137.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO2 strengths · Avg: 8.5/10
Market CapQuality
$104.54B9/10

Large-cap with strong market position

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

XEL2 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.8%8/10

Earnings expanding 20.8% YoY

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

XEL4 concerns · Avg: 3.0/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Free Cash FlowQuality
$-8.46B2/10

Negative free cash flow — burning cash

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 : XEL

The strongest argument for XEL centers on Price/Book, EPS Growth. Revenue growth of 14.1% demonstrates continued momentum.

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, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

XEL carries more volatility with a beta of 0.43 — expect wider price swings.

XEL is growing revenue faster at 14.1% — sustainability is the question.

SO generates stronger free cash flow (-1.9B), providing more financial flexibility.

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

Bottom Line

XEL scores higher overall (62/100 vs 54/100) and 14.1% 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.

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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