Constellation Energy vs Southern: Which Stock Could Rally?
Constellation Energy fell -5.2% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Southern gives you more. Southern (SO) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Constellation Energy (CEG) stock, suggesting you may be better off investing in SO
- SO’s quarterly revenue growth was 7.5%, vs. CEG’s 0.3%.
- In addition, its Last 12 Months revenue growth came in at 9.4%, ahead of CEG’s 3.6%.
- SO leads on profitability over both periods – LTM margin of 25.7% and 3-year average of 23.7%.
These differences become even clearer when you look at the financials side by side. The data highlights how CEG’s fundamentals stack up against those of SO on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CEG | SO | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 34.8 | 13.5 | SO |
| Revenue Growth | |||
| Last Quarter | 0.3% | 7.5% | SO |
| Last 12 Months | 3.6% | 9.4% | SO |
| Last 3 Year Average | 3.7% | 1.3% | CEG |
| Operating Margins | |||
| Last 12 Months | 12.1% | 25.7% | SO |
| Last 3 Year Average | 11.1% | 23.7% | SO |
| Momentum | |||
| Last 3 Year Return | 272.9% | 58.2% | CEG |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CEG Revenue Comparison | SO Revenue Comparison
See more margin details: CEG Operating Income Comparison | SO Operating Income Comparison
- Broadcom Stock Down 21%,Time to Buy?
- Ambarella Stock To $49?
- Would You Still Hold Southwest Airlines Stock If It Fell 30%?
- Would You Still Hold Palantir Technologies Stock If It Fell Another 30%?
- With Lam Research Stock Sliding, Have You Assessed The Risk?
- Is Fluence Energy Stock Built to Withstand More Downside?
You can see detailed fundamentals on Buy or Sell SO Stock and Buy or Sell CEG Stock and assess yourself which stock looks better. Nevertheless, we know that clients love their favorite stocks, but single-stock risk can undo years of gains. Savvy financial advisors diversify intelligently – learn how our Boston-based wealth management partner can help.
Getting back to comparison, let’s check out how these two stocks have performed for investors in the last few years.
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CEG Return | – | – | – | 37% | 93% | 51% | 299% | <=== | |
| SO Return | 1% | 16% | 8% | 2% | 23% | 14% | 82% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 109% | ||
| Monthly Win Rates [3] | |||||||||
| CEG Win Rate | – | – | 80% | 67% | 67% | 70% | 47% | ||
| SO Win Rate | 67% | 50% | 67% | 50% | 58% | 60% | 59% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| CEG Max Drawdown | – | – | – | -15% | -5% | -23% | -7% | <=== | |
| SO Max Drawdown | -32% | -7% | -8% | -12% | -5% | -2% | -11% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 11/13/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read SO Dip Buyer Analyses and CEG Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Whatever your view on either of these stocks, investing in one or two stocks remains a risky proposition. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.