WallStSmart

American Electric Power Co Inc (AEP)vsGoldman Sachs Group Inc (GS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Goldman Sachs Group Inc generates 181% more annual revenue ($61.53B vs $21.88B). GS leads profitability with a 29.4% profit margin vs 16.4%. GS appears more attractively valued with a PEG of 1.40. GS earns a higher WallStSmart Score of 75/100 (B).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

GS

Strong Buy

75

out of 100

Grade: B

Growth: 8.0Profit: 7.5Value: 6.3Quality: 5.0
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$76.88

Current Price

$137.11

$60.23 premium

UndervaluedFair: $76.88Overvalued

Intrinsic value data unavailable for GS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$74.53B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

GS6 strengths · Avg: 8.8/10
Market CapQuality
$274.13B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.4%10/10

Strong operational efficiency at 38.4%

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

EPS GrowthGrowth
24.3%8/10

Earnings expanding 24.3% YoY

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

GS1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-16.81B2/10

Negative free cash flow — burning cash

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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : GS

The strongest argument for GS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 29.4% and operating margin at 38.4%. Revenue growth of 14.5% demonstrates continued momentum.

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 : GS

The primary concerns for GS are Free Cash Flow.

Key Dynamics to Monitor

GS carries more volatility with a beta of 1.31 — expect wider price swings.

GS is growing revenue faster at 14.5% — sustainability is the question.

AEP generates stronger free cash flow (-246M), providing more financial flexibility.

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

Bottom Line

GS scores higher overall (75/100 vs 60/100), backed by strong 29.4% margins and 14.5% revenue growth. 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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Goldman Sachs Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City. It offers services in investment management, securities, asset management, prime brokerage, and securities underwriting. It also provides investment banking to institutional investors.

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