ED vs SO

For growth investors, Consolidated Edison, Inc.

(ED) is the stronger pick with 10. 9% revenue growth year-over-year, versus 10. 6% for The Southern Company (SO). Consolidated Edison, Inc. (ED) offers the better valuation at 18. 9x trailing P/E (17. 5x forward), making it the more compelling value choice. Analysts rate Consolidated Edison, Inc. (ED) a "Hold" — based on 27 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Consolidated Edison, Inc.

(ED) is the cheapest at 18. 9x versus The Southern Company at 23. 9x. On forward P/E, Consolidated Edison, Inc. is actually cheaper at 17. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Consolidated Edison, Inc. wins at 1. 53x versus The Southern Company's 3. 49x — a reasonable growth-adjusted valuation.

Over the past 5 years, The Southern Company (SO) delivered a total return of +62.

8%, compared to +58. 2% for Consolidated Edison, Inc. (ED). Over 10 years, the gap is even starker: SO returned +141. 5% versus ED's +85. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Consolidated Edison, Inc.

(ED) is the lower-risk stock at -0. 41β versus The Southern Company's -0. 15β — meaning SO is approximately -63% more volatile than ED relative to the S&P 500. On balance sheet safety, Consolidated Edison, Inc. (ED) carries a lower debt/equity ratio of 1% versus 169% for The Southern Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Consolidated Edison, Inc.

(ED) is pulling ahead at 10. 9% versus 10. 6% for The Southern Company (SO). On earnings-per-share growth, the picture is similar: Consolidated Edison, Inc. grew EPS 7. 6% year-over-year, compared to -1. 8% for The Southern Company. Over a 3-year CAGR, ED leads at 2. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

The Southern Company (SO) is the more profitable company, earning 14.

7% net margin versus 12. 0% for Consolidated Edison, Inc. — meaning it keeps 14. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SO leads at 24. 6% versus 17. 3% for ED. At the gross margin level — before operating expenses — ED leads at 81. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Consolidated Edison, Inc. (ED) is the more undervalued stock at a PEG of 1. 53x versus The Southern Company's 3. 49x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Consolidated Edison, Inc. (ED) trades at 17. 5x forward P/E versus 20. 4x for The Southern Company — 2. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SO: 6. 5% to $99. 62.

All stocks in this comparison pay dividends.

Consolidated Edison, Inc. (ED) offers the highest yield at 3. 0%, versus 2. 9% for The Southern Company (SO).

For long-horizon retirement investors, Consolidated Edison, Inc.

(ED) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 41), 3. 0% yield). Both have compounded well over 10 years (ED: +85. 6%, SO: +141. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.