Sifting through countless of stocks in the Electric Utilities industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in The Southern Company or Eversource Energy because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.
Read on to learn how The Southern Company and Eversource Energy compare based on key financial metrics to determine which better meets your investment needs.
About The Southern Company and Eversource Energy
The Southern Company, through its subsidiaries, engages in the sale of electricity. The company offers electric service to retail customers and wholesale customers; and energy-related products and services to natural gas choice markets. It also develops, constructs, acquires, owns, operates, and manages power generation assets, as well as battery energy storage projects; sells electricity at market-based rates in the wholesale market; and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, the company is involved in the distribution of natural gas in Illinois, Georgia, Virginia, and Tennessee; distributes energy and resilience solutions; and invests in telecommunications. The Southern Company was incorporated in 1945 and is headquartered in Atlanta, Georgia.
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company also operates regulated water utilities that provides water services to residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
Latest Electric Utilities and The Southern Company, Eversource Energy Stock News
As of September 2, 2026, The Southern Company had a $101.6 billion market capitalization, compared to the Electric Utilities median of $18.1 million. The Southern Company’s stock is up 1.8% in 2026, down 0.4% in the previous five trading days and down 4.11% in the past year.
Currently, The Southern Company’s price-earnings ratio is 21.3. The Southern Company’s trailing 12-month revenue is $30.2 billion with a 15.4% net profit margin. Year-over-year quarterly sales growth most recently was 0.1%. Analysts expect adjusted earnings to reach $4.589 per share for the current fiscal year. The Southern Company currently has a 3.4% dividend yield.
As of September 2, 2026, Eversource Energy had a $26.5 billion market cap, putting it in the 89th percentile of all stocks. Eversource Energy’s stock is up 5.5% in 2026, up 0.1% in the previous five trading days and up 10.58% in the past year.
Currently, Eversource Energy’s price-earnings ratio is 18.2. Eversource Energy’s trailing 12-month revenue is $14.0 billion with a 10.4% net profit margin. Year-over-year quarterly sales growth most recently was 2.3%. Analysts expect adjusted earnings to reach $4.651 per share for the current fiscal year. Eversource Energy currently has a 4.5% dividend yield.
How We Compare The Southern Company and Eversource Energy Stock Grades
Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at The Southern Company and Eversource Energy’s stock grades to see how they measure up against one another.
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The Southern Company and Eversource Energy Stock Value Grades
| Company | Ticker | Value |
| The Southern Company | SO | D |
| Eversource Energy | ES | B |
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.
The Southern Company has a Value Score of 39, which is Expensive.
Eversource Energy has a Value Score of 65, which is Value.
The Value Stock Winner: Eversource Energy
As you can clearly see from the Value Grade breakdown above, Eversource Energy is considered to have better value than The Southern Company. For investors who focus solely on a company’s valuation, Eversource Energy could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
The Southern Company and Eversource Energy’s Quality Grades
| Company | Ticker | Quality |
| The Southern Company | SO | D |
| Eversource Energy | ES | C |
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
The Southern Company has a Quality Score of 37, which is Weak.
Eversource Energy has a Quality Score of 50, which is Average.
The Quality Stock Winner: No Clear Winner
Neither The Southern Company or Eversource Energy has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if The Southern Company or Eversource Energy is the better investment when it comes to quality.
The Southern Company and Eversource Energy’s Estimate Revisions Grades
| Company | Ticker | Earnings Estimate |
| The Southern Company | SO | B |
| Eversource Energy | ES | D |
Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.
The Southern Company has a Earnings Estimate Score of 72, which is Positive.
Eversource Energy has a Earnings Estimate Score of 39, which is Negative.
The Earnings Estimate Revisions Grade Winner: The Southern Company
As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, The Southern Company has a better Earnings Estimate Revisions Grade than Eversource Energy. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, The Southern Company could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.
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Other The Southern Company and Eversource Energy Grades
In addition to Value, Estimate Revisions and Quality, A+ Investor also provides grades for Growth and Momentum.
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.
These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether The Southern Company and Eversource Energy pass any of our 60+ stock screens that have outperformed the market since their creation.
So, Which Is the Better Investment, The Southern Company or Eversource Energy Stock?
Overall, The Southern Company stock has a Value Score of 39, Estimate Revisions Score of 72 and Quality Score of 37.
Eversource Energy stock has a Value Score of 65, Estimate Revisions Score of 39 and Quality Score of 50.
Comparing The Southern Company and Eversource Energy’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
AAII Disclaimer
We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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