American Electric Power Co Inc (AEP)vsHawaiian Electric Industries Inc (HE)
AEP
American Electric Power Co Inc
$127.79
+0.06%
UTILITIES · Cap: $69.16B
HE
Hawaiian Electric Industries Inc
$13.54
+0.74%
UTILITIES · Cap: $2.30B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 626% more annual revenue ($22.43B vs $3.09B). AEP leads profitability with a 16.3% profit margin vs 4.1%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
HE
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
+30.1%
Fair Value
$23.73
Current Price
$13.54
$10.19 discount
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 23.7%
Reasonable price relative to book value
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
0.3% revenue growth
ROE of 8.0% — below average capital efficiency
4.1% margin — thin
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : HE
The strongest argument for HE centers on Price/Book, P/E Ratio.
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 : HE
The primary concerns for HE are PEG Ratio, Revenue Growth, Return on Equity. Thin 4.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
AEP profiles as a mature stock while HE is a value play — different risk/reward profiles.
HE carries more volatility with a beta of 0.56 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
HE generates stronger free cash flow (-43M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 54/100), backed by strong 16.3% margins and 10.2% revenue growth. HE offers better value entry with a 30.1% margin of safety. 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 →Hawaiian Electric Industries Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Hawaiian Electric Industries, Inc. is engaged in the renewable / sustainable infrastructure, banking and electricity utility investment businesses in the State of Hawaii. The company is headquartered in Honolulu, Hawaii.
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