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FTS vs SO

FTS
Fortis Inc.
NEUTRAL
Price
$56.33
Market Cap
$28.68B
Sector
Utilities
AI Confidence
85%
SO
The Southern Company
BEARISH
Price
$93.51
Market Cap
$105.41B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
FTS
22.62
SO
23.85
Forward P/E
FTS
19.92
SO
19.0
P/B Ratio
FTS
1.77
SO
2.91
P/S Ratio
FTS
2.36
SO
3.57
EV/EBITDA
FTS
11.83
SO
12.92

Profitability

Gross Margin
FTS
45.6%
SO
48.47%
Operating Margin
FTS
28.9%
SO
12.73%
Profit Margin
FTS
14.78%
SO
14.69%
ROE
FTS
7.58%
SO
11.04%
ROA
FTS
3.01%
SO
3.28%

Growth

Revenue Growth
FTS
4.4%
SO
10.1%
Earnings Growth
FTS
5.0%
SO
-22.1%

Financial Health

Debt/Equity
FTS
1.34
SO
1.91
Current Ratio
FTS
0.51
SO
0.65
Quick Ratio
FTS
0.25
SO
0.34

Dividends

Dividend Yield
FTS
3.28%
SO
3.25%
Payout Ratio
FTS
73.09%
SO
75.0%

AI Verdict

FTS NEUTRAL

Fortis Inc. presents a stable but overvalued profile, characterized by a Piotroski F-Score of 4/9 and a significant premium over its Graham Number ($42.28) and Intrinsic Value ($36.11). While the company maintains superior profit margins and a healthier Debt/Equity ratio than its sector peers, it suffers from severe short-term liquidity constraints with a Current Ratio of 0.51. Growth is sluggish compared to the utility sector average, and the technical trend is strongly bearish. The stock currently functions as a low-growth defensive play trading at a valuation that exceeds its fundamental baseline.

Strengths
Profit margins (14.78%) are significantly higher than the sector average (6.78%)
Debt/Equity ratio (1.34) is lower than the sector average (1.63)
Positive ROE (7.58%) compared to a negative sector average (-0.86%)
Risks
Severe liquidity risk indicated by a Current Ratio of 0.51 and Quick Ratio of 0.25
Trading at a substantial premium to Graham Number ($42.28) and Intrinsic Value ($36.11)
Revenue growth (4.40%) is drastically lagging behind the sector average (19.38%)
SO BEARISH

The Southern Company (SO) exhibits significant valuation misalignment, trading at $93.51 despite a Graham Number of $53.27 and an Intrinsic Value of $27.44. While the Piotroski F-Score of 4/9 indicates stable health, this is offset by a critical liquidity position (Current Ratio 0.65) and a severe contraction in earnings growth (-22.10% YoY and -76.2% Q/Q). Bearish insider sentiment and a 0/100 technical trend further suggest a lack of confidence in the current price level. Despite strong profit margins relative to the utility sector, the fundamental disconnect between price and value is too wide to ignore.

Strengths
Strong profit margins (14.69%) compared to sector average (7.02%)
Positive revenue growth (10.10% YoY)
ROE of 11.04% significantly outperforms sector average
Risks
Severe earnings collapse with Q/Q EPS growth at -76.2%
Poor liquidity indicated by a Current Ratio of 0.65 and Quick Ratio of 0.34
High Debt/Equity ratio (1.91) exceeding sector average (1.59)

Compare Another Pair

FTS vs SO: Head-to-Head Comparison

This page compares Fortis Inc. (FTS) and The Southern Company (SO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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