WallStSmart

American Electric Power Co Inc (AEP)vsEdison International (EIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 14% more annual revenue ($22.43B vs $19.61B). EIX leads profitability with a 18.1% profit margin vs 16.3%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

EIX

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 8.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

EIXOvervalued (-11.9%)

Margin of Safety

-11.9%

Fair Value

$59.90

Current Price

$73.33

$13.43 premium

UndervaluedFair: $59.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

EIX4 strengths · Avg: 8.8/10
P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Return on EquityProfitability
21.4%9/10

Every $100 of equity generates 21 in profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.5%8/10

Strong operational efficiency at 27.5%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

EIX4 concerns · Avg: 2.0/10
PEG RatioValuation
3.452/10

Expensive relative to growth rate

EPS GrowthGrowth
-63.2%2/10

Earnings declined 63.2%

Free Cash FlowQuality
$-112.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

Distress zone — elevated risk

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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : EIX

The strongest argument for EIX centers on P/E Ratio, Return on Equity, Price/Book. Profitability is solid with margins at 18.1% and operating margin at 27.5%.

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : EIX

The primary concerns for EIX are PEG Ratio, EPS Growth, Free Cash Flow. Debt-to-equity of 2.47 is elevated, increasing financial risk.

Key Dynamics to Monitor

EIX carries more volatility with a beta of 0.66 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

EIX generates stronger free cash flow (-112M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (64/100 vs 63/100), backed by strong 16.3% margins and 10.2% 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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Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

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