ETR vs SO

For growth investors, The Southern Company (SO) is the stronger pick with 10.

6% revenue growth year-over-year, versus 9. 0% for Entergy Corporation (ETR). The Southern Company (SO) offers the better valuation at 24. 5x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Entergy Corporation (ETR) a "Buy" — based on 31 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, The Southern Company (SO) is the cheapest at 24.

5x versus Entergy Corporation at 30. 0x. On forward P/E, The Southern Company is actually cheaper at 20. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Southern Company wins at 3. 49x versus Entergy Corporation's 10. 14x.

Over the past 5 years, Entergy Corporation (ETR) delivered a total return of +141.

4%, compared to +67. 9% for The Southern Company (SO). Over 10 years, the gap is even starker: ETR returned +251. 0% versus SO's +141. 5%. 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), The Southern Company (SO) is the lower-risk stock at -0.

15β versus Entergy Corporation's 0. 30β — meaning ETR is approximately -300% more volatile than SO relative to the S&P 500. On balance sheet safety, The Southern Company (SO) carries a lower debt/equity ratio of 169% versus 180% for Entergy Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Southern Company (SO) is pulling ahead at 10.

6% versus 9. 0% for Entergy Corporation (ETR). On earnings-per-share growth, the picture is similar: Entergy Corporation grew EPS 59. 6% year-over-year, compared to -1. 8% for The Southern Company. Over a 3-year CAGR, SO leads at 0. 3% 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 13. 7% for Entergy Corporation — 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 23. 6% for ETR. At the gross margin level — before operating expenses — ETR leads at 29. 9%, 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, The Southern Company (SO) is the more undervalued stock at a PEG of 3. 49x versus Entergy Corporation's 10. 14x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Southern Company (SO) trades at 20. 4x forward P/E versus 25. 7x for Entergy Corporation — 5. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SO: 3. 9% to $99. 62.

All stocks in this comparison pay dividends.

The Southern Company (SO) offers the highest yield at 2. 8%, versus 2. 0% for Entergy Corporation (ETR).

For long-horizon retirement investors, The Southern Company (SO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

15), 2. 8% yield, +141. 5% 10Y return). Both have compounded well over 10 years (SO: +141. 5%, ETR: +251. 0%), 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.