WallStSmart

American Electric Power Co Inc (AEP)vsConsolidated Edison Inc (ED)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 29% more annual revenue ($21.88B vs $16.92B). AEP leads profitability with a 16.4% profit margin vs 12.0%. ED appears more attractively valued with a PEG of 2.61. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

ED

Buy

55

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 4.7Quality: 7.0
Piotroski: 3/9Altman Z: 40.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
EDSignificantly Overvalued (-186.5%)

Margin of Safety

-186.5%

Fair Value

$38.35

Current Price

$110.03

$71.68 premium

UndervaluedFair: $38.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

ED2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
40.4110/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

ED4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.193/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

EPS GrowthGrowth
-8.3%2/10

Earnings declined 8.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : ED

The strongest argument for ED centers on Altman Z-Score, Price/Book.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.

Bear Case : ED

The primary concerns for ED are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AEP profiles as a mature stock while ED is a value play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.57 — expect wider price swings.

AEP is growing revenue faster at 13.2% — sustainability is the question.

ED generates stronger free cash flow (176M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (60/100 vs 55/100), backed by strong 16.4% margins and 13.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Electric Power Co Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.

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Consolidated Edison Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Consolidated Edison, Inc., commonly known as Con Edison (stylized as conEdison) or ConEd, is one of the largest investor-owned energy companies in the United States, with approximately $12 billion in annual revenues as of 2017, and over $48 billion in assets. The company provides a wide range of energy-related products and services to its customers through its subsidiaries.

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