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CMS vs SO
Which Stock Would AI Choose? CMS Energy (CMS) vs. Southern Company (SO) Stock Comparison
Key Takeaways
- Both CMS and SO delivered strong Q1 2026 earnings beats, with adjusted EPS of $1.13 and $1.32 respectively, reaffirming full-year guidance amid rising data center demand.
- SO shows superior YTD performance at 10.84% versus CMS's 7.95%, reflecting stronger momentum in the Southeast utilities market.
- SO boasts a larger market cap of $108B compared to CMS's $23B, with slightly higher dividend yield at 3.17% vs. 3.04%.
- Recent weeks saw both stocks face mild pullbacks amid broader sector rotation, but data center growth (42% for SO, manufacturing for CMS) supports long-term stability.
- Low betas (0.37 for CMS, 0.36 for SO) highlight defensive positioning in volatile markets.
- Analyst targets suggest upside: $81.86 for CMS (~9% from $74.93), $101.71 for SO (~6% from $95.90).
Introduction
This stock comparison evaluates CMS Energy Corporation and Southern Company in the regulated electric utilities sector, both benefiting from steady demand growth driven by data centers, manufacturing resurgence, and electrification trends. Investors seeking defensive income plays with low volatility (betas under 0.4) and reliable dividends will find relevance here, especially amid recent market rotations favoring growth over staples. Recent quarterly results highlight execution amid weather variability and capital-intensive clean energy transitions, offering insights into relative performance, growth catalysts, and risk profiles for portfolio allocation in the current environment.
CMS Overview and Recent Performance
CMS Energy Corporation, headquartered in Jackson, Michigan, operates primarily through its subsidiary Consumers Energy, serving 1.9 million electric and 1.8 million gas customers. The company focuses on regulated electric and gas utilities alongside NorthStar Clean Energy for renewables. In recent market activity, shares traded around $74.93, reflecting a YTD gain of 7.95% and 1-year return of 5.69%, with a market cap of $23.15B, trailing P/E of 20.76, and dividend yield of 3.04%.
Q1 2026 adjusted EPS reached $1.13, beating estimates despite storm-related challenges, with revenue up to $2.73B. Management reaffirmed 2026 adjusted EPS guidance of $3.83–$3.90 and long-term 6–8% growth, bolstered by Michigan's constructive regulation, a $24B five-year capex plan, and large-load pipeline from manufacturing and data centers expected to lower customer rates. Sentiment has been supported by top-tier ROE approvals (9.9%) and renewables integration, though recent weeks saw mild pullbacks amid sector-wide profit-taking.
SO Overview and Recent Performance
Southern Company (SO), based in Atlanta, Georgia, is one of the largest U.S. utilities, serving nine million customers across electric operations in three states and natural gas in four via subsidiaries like Georgia Power and Alabama Power. It emphasizes regulated generation, transmission, and distribution with a focus on nuclear and renewables. Shares recently hovered at $95.90, delivering a YTD return of 10.84% and 1-year gain of 8.78%, backed by a $108B market cap, trailing P/E of 24.53, and dividend yield of 3.17%.
Q1 2026 adjusted EPS hit $1.32, surpassing forecasts with $8.4B revenue, fueled by 2.3% retail sales growth including 42% data center usage surge and 46,000 new residential customers. Guidance includes 8–9% EPS growth through 2028, supported by $80B capex through 2029 and $26.5B DOE loans for savings. Recent performance reflects robust Southeast demand, though milder weather and higher interest tempered gains; shares experienced short-term dips amid utility sector debates on rates.
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Head-to-Head Comparison
Both CMS and SO operate regulated utility models centered on electric and gas distribution, but SO’s larger scale ($108B vs. $23B market cap) affords broader diversification across Southeast states, contrasting CMS’s Michigan focus. Growth drivers diverge: SO leverages explosive data center demand (42% Q1 growth, 75GW pipeline) and advanced manufacturing, while CMS emphasizes semiconductors and renewables (13GW planned).
Recent momentum favors SO with higher YTD/1Y returns, though both exhibit stability (similar low betas). Risk factors include interest rate sensitivity and regulatory hurdles; SO faces Georgia rate pressures but benefits from DOE loans, while CMS enjoys favorable Michigan PSC outcomes. Sector exposure is comparable (regulated electric), but SO’s higher net margin (14.46% vs. 12.55%) signals better profitability. Market sentiment tilts toward SO for scale-driven catalysts versus CMS’s regional efficiency.
Tickeron AI Verdict
Tickeron’s AI currently favors SO based on stronger trend consistency, superior YTD momentum, larger-scale data center catalysts, and higher retail sales growth positioning it for sustained outperformance in the utilities sector. While CMS offers compelling Michigan-specific stability and EPS growth potential, SO’s broader pipeline and execution edge provide higher probabilistic upside in recent market conditions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CMS is a StrongBuy and SO is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CMS’s FA Score shows that 0 FA rating(s) are green whileSO’s FA Score has 2 green FA rating(s).
- CMS’s FA Score: 0 green, 5 red.
- SO’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CMS’s TA Score shows that 3 TA indicator(s) are bullish while SO’s TA Score has 5 bullish TA indicator(s).
- CMS’s TA Score: 3 bullish, 6 bearish.
- SO’s TA Score: 5 bullish, 4 bearish.
Price Growth
CMS (@Electric Utilities) experienced а 0.00% price change this week, while SO (@Electric Utilities) price change was +1.55% for the same time period.
The average weekly price growth across all stocks in the @Electric Utilities industry was -0.67%. For the same industry, the average monthly price growth was -1.56%, and the average quarterly price growth was +4.76%.
Reported Earning Dates
CMS is expected to report earnings on Jul 23, 2026.
SO is expected to report earnings on Jul 30, 2026.
Industries' Descriptions
@Electric Utilities (-0.67% weekly)Electric utilities companies generate, transmit and distribute electricity to businesses/offices and residences. Companies may be owned by the government or investors or public shareholders, or a combination thereof. The industry also includes firms that buy and sell electricity. Companies in this industry typically require significant investments in infrastructure. Many firms in this industry pay substantial and regular dividends to shareholders. However, changes in interest rates (and their impact on debt burdens), natural disasters and changing commodity prices could be factors affecting energy utilities’ profit margins. NextEra Energy, Inc., Duke Energy Corporation, Dominion Energy Inc. and Southern Company are among U.S. electric utilities companies with the largest market capitalizations.
| CMS | SO | CMS / SO | |
| Capitalization | 22.6B | 106B | 21% |
| EBITDA | 3.4B | 14.5B | 23% |
| Gain YTD | 6.438 | 9.708 | 66% |
| P/E Ratio | 20.28 | 24.08 | 84% |
| Revenue | 8.82B | 30.2B | 29% |
| Total Cash | 175M | N/A | - |
| Total Debt | 19.1B | 76B | 25% |
CMS | SO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 57 | 74 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 65 Fair valued | 64 Fair valued | |
PROFIT vs RISK RATING 1..100 | 48 | 17 | |
SMR RATING 1..100 | 62 | 63 | |
PRICE GROWTH RATING 1..100 | 59 | 51 | |
P/E GROWTH RATING 1..100 | 53 | 33 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
SO's Valuation (64) in the Electric Utilities industry is in the same range as CMS (65). This means that SO’s stock grew similarly to CMS’s over the last 12 months.
SO's Profit vs Risk Rating (17) in the Electric Utilities industry is in the same range as CMS (48). This means that SO’s stock grew similarly to CMS’s over the last 12 months.
CMS's SMR Rating (62) in the Electric Utilities industry is in the same range as SO (63). This means that CMS’s stock grew similarly to SO’s over the last 12 months.
SO's Price Growth Rating (51) in the Electric Utilities industry is in the same range as CMS (59). This means that SO’s stock grew similarly to CMS’s over the last 12 months.
SO's P/E Growth Rating (33) in the Electric Utilities industry is in the same range as CMS (53). This means that SO’s stock grew similarly to CMS’s over the last 12 months.
| CMS | SO | |
|---|---|---|
| RSI ODDS (%) | N/A | 1 day ago 75% |
| Stochastic ODDS (%) | 1 day ago 50% | 1 day ago 50% |
| Momentum ODDS (%) | 1 day ago 34% | 1 day ago 34% |
| MACD ODDS (%) | 6 days ago 42% | 1 day ago 47% |
| TrendWeek ODDS (%) | 1 day ago 47% | 1 day ago 53% |
| TrendMonth ODDS (%) | 1 day ago 35% | 1 day ago 50% |
| Advances ODDS (%) | 1 day ago 49% | 1 day ago 51% |
| Declines ODDS (%) | 13 days ago 39% | 13 days ago 41% |
| BollingerBands ODDS (%) | 1 day ago 60% | 1 day ago 68% |
| Aroon ODDS (%) | 1 day ago 23% | N/A |
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CMS and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMS has been closely correlated with DTE. These tickers have moved in lockstep 85% of the time. This A.I.-generated data suggests there is a high statistical probability that if CMS jumps, then DTE could also see price increases.
SO and
Correlation & Price change
A.I.dvisor indicates that over the last year, SO has been closely correlated with DUK. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if SO jumps, then DUK could also see price increases.