American Electric Power Co Inc (AEP)vsFirstEnergy Corporation (FE)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
FE
FirstEnergy Corporation
$49.52
+0.73%
UTILITIES · Cap: $28.41B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 47% more annual revenue ($21.88B vs $14.90B). AEP leads profitability with a 16.4% profit margin vs 6.9%. FE appears more attractively valued with a PEG of 1.48. FE earns a higher WallStSmart Score of 65/100 (C+).
AEP
Buy60
out of 100
Grade: C+
FE
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-94.5%
Fair Value
$24.64
Current Price
$49.52
$24.88 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.8%
Reasonable price relative to book value
Strong operational efficiency at 26.6%
Revenue surging 20.7% year-over-year
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Moderate valuation
4.5% earnings growth
6.9% margin — thin
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : FE
The strongest argument for FE centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 20.7% demonstrates continued momentum. PEG of 1.48 suggests the stock is reasonably priced for its growth.
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 : FE
The primary concerns for FE are P/E Ratio, EPS Growth, Profit Margin.
Key Dynamics to Monitor
AEP profiles as a mature stock while FE is a growth play — different risk/reward profiles.
FE carries more volatility with a beta of 0.60 — expect wider price swings.
FE is growing revenue faster at 20.7% — sustainability is the question.
FE generates stronger free cash flow (-30M), providing more financial flexibility.
Bottom Line
FE scores higher overall (65/100 vs 60/100) and 20.7% 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.
Visit Website →FirstEnergy Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
FirstEnergy Corp is an electric utility headquartered in Akron, Ohio. Its subsidiaries and affiliates are involved in the distribution, transmission, and generation of electricity, as well as energy management and other energy-related services.
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