After CEG’s 6.6% Climb in a Day, SO Looks Like the Stronger Long-Term Play
Southern (SO) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Constellation Energy (CEG), suggesting you may be better off investing in SO
- SO’s quarterly revenue growth was 17.0%, vs. CEG’s 11.4%.
- In addition, its Last 12 Months revenue growth came in at 9.6%, ahead of CEG’s 5.4%.
- SO leads on profitability over both periods – LTM margin of 26.5% and 3-year average of 23.1%.
CEG generates and sells electricity across U.S. regions with 32,400 MW capacity from nuclear, wind, solar, natural gas, and hydroelectric power sources. SO generates, transmits, and distributes electricity; operates gas distribution, pipelines, wholesale, and marketing; manages extensive natural gas pipelines and storage for diverse customers.
Valuation & Performance Overview
| CEG | SO | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 32.0 | 14.1 | SO |
| Revenue Growth | |||
| Last Quarter | 11.4% | 17.0% | SO |
| Last 12 Months | 5.4% | 9.6% | SO |
| Last 3 Year Average | 6.8% | 6.3% | CEG |
| Operating Margins | |||
| Last 12 Months | 13.9% | 26.5% | SO |
| Last 3 Year Average | 8.8% | 23.1% | SO |
| Momentum | |||
| Last 3 Year Return | 332.5% | 57.5% | SO |
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
But do these numbers tell the full story? Read Buy or Sell SO Stock to see if Southern’s edge holds up under the hood or if Constellation Energy still has cards to play (see Buy or Sell CEG Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CEG Return | – | – | – | 37% | 93% | 58% | 293% | <=== | |
| SO Return | 1% | 16% | 8% | 2% | 23% | 18% | 88% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| CEG Win Rate | – | – | 80% | 67% | 67% | 62% | 46% | ||
| SO Win Rate | 67% | 50% | 67% | 50% | 58% | 62% | 59% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 62% | 63% | <=== | |
| 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 10/1/2025 (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.