WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 63% more annual revenue ($22.79B vs $14.00B). AEP leads profitability with a 13.8% profit margin vs 10.3%. AEP appears more attractively valued with a PEG of 1.97. AEP earns a higher WallStSmart Score of 58/100 (C).

AEP

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

ES

Buy

57

out of 100

Grade: C

Growth: 3.3Profit: 6.5Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-86.9%)

Margin of Safety

-86.9%

Fair Value

$65.98

Current Price

$122.23

$56.25 premium

UndervaluedFair: $65.98Overvalued
ESSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$53.12

Current Price

$68.52

$15.40 premium

UndervaluedFair: $53.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.14B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

ES2 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Debt/EquityHealth
1.663/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

ES4 concerns · Avg: 3.5/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Debt/EquityHealth
1.823/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : ES

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

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : ES

The primary concerns for ES are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.82 is elevated, increasing financial risk.

Key Dynamics to Monitor

ES carries more volatility with a beta of 0.70 — expect wider price swings.

AEP is growing revenue faster at 7.0% — sustainability is the question.

ES generates stronger free cash flow (76M), providing more financial flexibility.

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

Bottom Line

AEP scores higher overall (58/100 vs 57/100). 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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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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