WallStSmart

American Electric Power Co Inc (AEP)vsEversource Energy (ES)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 61% more annual revenue ($22.43B vs $13.93B). AEP leads profitability with a 16.3% profit margin vs 12.6%. AEP appears more attractively valued with a PEG of 2.27. ES earns a higher WallStSmart Score of 65/100 (B-).

AEP

Buy

64

out of 100

Grade: C+

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

ES

Strong Buy

65

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

ESSignificantly Overvalued (-33.4%)

Margin of Safety

-33.4%

Fair Value

$52.65

Current Price

$70.60

$17.95 premium

UndervaluedFair: $52.65Overvalued

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%

ES3 strengths · Avg: 8.0/10
P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.9%8/10

Strong operational efficiency at 24.9%

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

ES4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.843/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.902/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.622/10

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 : ES

The strongest argument for ES centers on P/E Ratio, Price/Book, Operating Margin.

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 : ES

The primary concerns for ES are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.84 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ES carries more volatility with a beta of 0.73 — expect wider price swings.

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

ES generates stronger free cash flow (315M), providing more financial flexibility.

Bottom Line

ES scores higher overall (65/100 vs 64/100). Both earn "Strong 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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Eversource Energy

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Eversource Energy is a publicly traded, Fortune 500 energy company headquartered in Hartford, Connecticut, and Boston, Massachusetts.

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