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Things to Weigh Before Choosing Between OKLO and SO Stock
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Key Takeaways
{\"0\":\"OKLO targets long-term growth with Aurora microreactors but faces steep risks and delays.\",\"1\":\"Southern Company offers 78 years of dividends, steady EPS growth, and a $76B capital plan.\",\"2\":\"OKLO surged 400% YTD on SMR hype, while SO gained 15% with stable valuations and earnings.\"}
Nuclear energy is enjoying a global revival, with policymakers pushing for tripled capacity by 2050 and investors eyeing clean baseload power as essential for both electrification and artificial intelligence. Against this backdrop, Oklo Inc. ((OKLO - Free Report) ) and The Southern Company ((SO - Free Report) ) stand out. Oklo represents a bold, disruptive bet on small modular reactors, while Southern Company offers decades of operating experience and a proven record of delivering shareholder returns.
Both companies are deeply tied to nuclear, but their stories could not be more different. One is a pre-revenue innovator chasing transformative growth. The other is a regulated utility, delivering steady earnings and dividends through one of the largest nuclear fleets in the United States.
Let’s dive deep and closely compare the fundamentals of the two stocks to figure out which one offers better prospects.
The Case for OKLO Stock
OKLO has captured attention with its Aurora microreactors, designed to deliver compact, reliable nuclear power for data centers, military bases, and industrial sites. The company pitches itself not as an equipment seller, but as an operator, securing long-term power purchase agreements to build recurring revenues. On paper, a 14 GW pipeline translating into $5 billion in annual revenues by 2028 makes the growth story sound compelling. Partnerships with Liberty Energy, Vertiv, and Korea Hydro & Nuclear Power bolster its credibility.
But ambition comes with risk. Oklo is still pre-revenue, and its first unit is not expected to generate power until 2027 or 2028 at the earliest. The timeline is fraught with hurdles—regulatory approvals, construction challenges, and financing needs. The Nuclear Regulatory Commission already rejected its first application in 2022, and even if a new one is filed in late 2025, reviews could take years. Every delay stretches the wait for revenues further and raises doubts over execution.
OKLO has also become closely linked to the AI energy story, with its small modular reactors pitched as an ideal solution for data centers’ immense electricity demand. While this connection keeps investor interest high, it adds pressure to deliver on promises. At the same time, cash burn remains steep at $65-$80 million annually, making further equity raises inevitable. The $440 million stock issuance in June 2025 diluted shareholders, and more capital raises are likely, given the capital intensity of nuclear projects. For investors, Oklo is a highly speculative bet — potentially transformational, but burdened with long timelines and funding risk.
The Case for SO Stock
Southern Company, by contrast, represents the opposite end of the spectrum. With 78 years of dividend stability and 24 consecutive years of increases, SO appeals to investors seeking steady income. Its regulated business model underpins earnings predictability, while its long-term guidance of 5-7% EPS growth balances income with moderate capital appreciation.
Southern Company is also one of the most experienced nuclear operators in the country. Through its Southern Nuclear subsidiary, it manages eight units across Alabama and Georgia, powering millions of homes with reliable, carbon-free electricity. The completion of Plant Vogtle Units 3 and 4, the first new U.S. reactors in more than three decades, was a milestone achievement. Despite years of delays and billions in overruns, the addition of these units makes Plant Vogtle the largest clean energy generator in the nation and underscores Southern’s operational resilience.
Beyond Vogtle, SO operates Plant Hatch and Plant Farley, both long-running nuclear facilities recognized for their reliability and environmental stewardship. With more than 2,500 employees across its nuclear sites, Southern has built a culture of safety, innovation, and dependability. The company also invests heavily in next-generation technologies, from gas plants and battery storage to wind repowering, supported by a $76 billion five-year capital plan. However, these projects carry risks of delays and cost inflation, as Vogtle itself demonstrated.
For investors, Southern Company provides a tested, lower-risk way to participate in the nuclear energy buildout. Unlike Oklo, which is years away from revenues, SO already generates close to $27 billion annually and delivered EPS of $4.05 in 2024. Its scale, stability, and proven execution set it apart in an industry often defined by uncertainty.
Price Performance
Oklo has surged more than 400% year to date, reflecting investor enthusiasm for small modular reactors and their potential role in AI-driven energy demand. Southern Company, by comparison, has posted a modest 15% gain — steady, but nowhere near the speculative highs of OKLO.
Image Source: Zacks Investment Research
Valuation Comparison
Valuations tell a similar story. OKLO trades at a lofty 22.15X price-to-book ratio, a figure that reflects hype more than earnings power. Southern Company, by contrast, trades at just 2.79X P/B, more in line with regulated utilities. The valuation gap underscores the difference: one stock is priced for aggressive growth years away, the other for stability and income today.
Image Source: Zacks Investment Research
EPS Outlook
Earnings projections show another divergence. For 2025, Southern’s EPS is expected to rise 5.4%, with another 7.4% growth in 2026.
Image Source: Zacks Investment Research
OKLO, while still pre-revenue, is projected to show 32.4% growth in 2025 before swinging to a 10.6% decline in 2026. In other words, Oklo’s earnings trajectory is highly volatile, while Southern’s remains steady and predictable.
Image Source: Zacks Investment Research
Conclusion
Both Oklo and Southern Company are tied to nuclear power, but they occupy very different investment profiles. Oklo offers high-risk, high-reward potential centered on future commercialization of small modular reactors, while Southern provides dependable income, proven execution, and steady growth from an already robust nuclear fleet. The stocks carry a Zacks Rank #3 (Hold) each, making it difficult to choose a definitive winner. However, Southern Company looks slightly better placed right now — its stable revenues, predictable EPS growth, and reliable dividends offer a stronger foundation than Oklo’s long and uncertain commercialization pathway.
Image: Bigstock
Things to Weigh Before Choosing Between OKLO and SO Stock
Key Takeaways
Nuclear energy is enjoying a global revival, with policymakers pushing for tripled capacity by 2050 and investors eyeing clean baseload power as essential for both electrification and artificial intelligence. Against this backdrop, Oklo Inc. ((OKLO - Free Report) ) and The Southern Company ((SO - Free Report) ) stand out. Oklo represents a bold, disruptive bet on small modular reactors, while Southern Company offers decades of operating experience and a proven record of delivering shareholder returns.
Both companies are deeply tied to nuclear, but their stories could not be more different. One is a pre-revenue innovator chasing transformative growth. The other is a regulated utility, delivering steady earnings and dividends through one of the largest nuclear fleets in the United States.
Let’s dive deep and closely compare the fundamentals of the two stocks to figure out which one offers better prospects.
The Case for OKLO Stock
OKLO has captured attention with its Aurora microreactors, designed to deliver compact, reliable nuclear power for data centers, military bases, and industrial sites. The company pitches itself not as an equipment seller, but as an operator, securing long-term power purchase agreements to build recurring revenues. On paper, a 14 GW pipeline translating into $5 billion in annual revenues by 2028 makes the growth story sound compelling. Partnerships with Liberty Energy, Vertiv, and Korea Hydro & Nuclear Power bolster its credibility.
But ambition comes with risk. Oklo is still pre-revenue, and its first unit is not expected to generate power until 2027 or 2028 at the earliest. The timeline is fraught with hurdles—regulatory approvals, construction challenges, and financing needs. The Nuclear Regulatory Commission already rejected its first application in 2022, and even if a new one is filed in late 2025, reviews could take years. Every delay stretches the wait for revenues further and raises doubts over execution.
OKLO has also become closely linked to the AI energy story, with its small modular reactors pitched as an ideal solution for data centers’ immense electricity demand. While this connection keeps investor interest high, it adds pressure to deliver on promises. At the same time, cash burn remains steep at $65-$80 million annually, making further equity raises inevitable. The $440 million stock issuance in June 2025 diluted shareholders, and more capital raises are likely, given the capital intensity of nuclear projects. For investors, Oklo is a highly speculative bet — potentially transformational, but burdened with long timelines and funding risk.
The Case for SO Stock
Southern Company, by contrast, represents the opposite end of the spectrum. With 78 years of dividend stability and 24 consecutive years of increases, SO appeals to investors seeking steady income. Its regulated business model underpins earnings predictability, while its long-term guidance of 5-7% EPS growth balances income with moderate capital appreciation.
Southern Company is also one of the most experienced nuclear operators in the country. Through its Southern Nuclear subsidiary, it manages eight units across Alabama and Georgia, powering millions of homes with reliable, carbon-free electricity. The completion of Plant Vogtle Units 3 and 4, the first new U.S. reactors in more than three decades, was a milestone achievement. Despite years of delays and billions in overruns, the addition of these units makes Plant Vogtle the largest clean energy generator in the nation and underscores Southern’s operational resilience.
Beyond Vogtle, SO operates Plant Hatch and Plant Farley, both long-running nuclear facilities recognized for their reliability and environmental stewardship. With more than 2,500 employees across its nuclear sites, Southern has built a culture of safety, innovation, and dependability. The company also invests heavily in next-generation technologies, from gas plants and battery storage to wind repowering, supported by a $76 billion five-year capital plan. However, these projects carry risks of delays and cost inflation, as Vogtle itself demonstrated.
For investors, Southern Company provides a tested, lower-risk way to participate in the nuclear energy buildout. Unlike Oklo, which is years away from revenues, SO already generates close to $27 billion annually and delivered EPS of $4.05 in 2024. Its scale, stability, and proven execution set it apart in an industry often defined by uncertainty.
Price Performance
Oklo has surged more than 400% year to date, reflecting investor enthusiasm for small modular reactors and their potential role in AI-driven energy demand. Southern Company, by comparison, has posted a modest 15% gain — steady, but nowhere near the speculative highs of OKLO.
Valuation Comparison
Valuations tell a similar story. OKLO trades at a lofty 22.15X price-to-book ratio, a figure that reflects hype more than earnings power. Southern Company, by contrast, trades at just 2.79X P/B, more in line with regulated utilities. The valuation gap underscores the difference: one stock is priced for aggressive growth years away, the other for stability and income today.
EPS Outlook
Earnings projections show another divergence. For 2025, Southern’s EPS is expected to rise 5.4%, with another 7.4% growth in 2026.
OKLO, while still pre-revenue, is projected to show 32.4% growth in 2025 before swinging to a 10.6% decline in 2026. In other words, Oklo’s earnings trajectory is highly volatile, while Southern’s remains steady and predictable.
Conclusion
Both Oklo and Southern Company are tied to nuclear power, but they occupy very different investment profiles. Oklo offers high-risk, high-reward potential centered on future commercialization of small modular reactors, while Southern provides dependable income, proven execution, and steady growth from an already robust nuclear fleet. The stocks carry a Zacks Rank #3 (Hold) each, making it difficult to choose a definitive winner. However, Southern Company looks slightly better placed right now — its stable revenues, predictable EPS growth, and reliable dividends offer a stronger foundation than Oklo’s long and uncertain commercialization pathway.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.