WallStSmart

American Electric Power Co Inc (AEP)vsEntergy Corporation (ETR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 69% more annual revenue ($22.43B vs $13.29B). AEP leads profitability with a 16.3% profit margin vs 13.4%. ETR appears more attractively valued with a PEG of 2.06. 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: 0.69

ETR

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

ETRSignificantly Overvalued (-69.4%)

Margin of Safety

-69.4%

Fair Value

$66.31

Current Price

$112.32

$46.01 premium

UndervaluedFair: $66.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.99B9/10

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%

ETR2 strengths · Avg: 8.5/10
Market CapQuality
$53.60B9/10

Large-cap with strong market position

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.224/10

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
0.692/10

Distress zone — elevated risk

ETR4 concerns · Avg: 3.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

P/E RatioValuation
28.6x4/10

Moderate valuation

EPS GrowthGrowth
1.2%4/10

1.2% earnings growth

Debt/EquityHealth
1.963/10

Elevated debt levels

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 : ETR

The strongest argument for ETR centers on Market Cap, Price/Book. Revenue growth of 12.0% demonstrates continued momentum.

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 : ETR

The primary concerns for ETR are PEG Ratio, P/E Ratio, EPS Growth. Debt-to-equity of 1.96 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

AEP carries more volatility with a beta of 0.50 — expect wider price swings.

ETR is growing revenue faster at 12.0% — sustainability is the question.

AEP generates stronger free cash flow (-1.3B), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 53/100), 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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Entergy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Entergy Corporation is a Fortune 500 integrated energy company engaged primarily in electric power production and retail distribution operations in the Deep South of the United States.

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