American Electric Power Co Inc (AEP)vsH2O America (HTO)
AEP
American Electric Power Co Inc
$126.53
-0.19%
UTILITIES · Cap: $70.90B
HTO
H2O America
$62.95
+0.51%
UTILITIES · Cap: $2.83B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 2717% more annual revenue ($23.61B vs $838.18M). AEP leads profitability with a 14.2% profit margin vs 12.5%. HTO appears more attractively valued with a PEG of 2.68. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
HTO
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-82.5%
Fair Value
$69.32
Current Price
$126.53
$57.21 premium
Margin of Safety
+19.3%
Fair Value
$64.40
Current Price
$62.95
$1.45 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 26.9%
Reasonable price relative to book value
Strong operational efficiency at 25.0%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
4.0% revenue growth
ROE of 6.5% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : HTO
The primary concerns for HTO are Revenue Growth, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.47 — expect wider price swings.
AEP is growing revenue faster at 13.7% — sustainability is the question.
HTO generates stronger free cash flow (-50M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (64/100 vs 53/100) and 13.7% revenue growth. HTO offers better value entry with a 19.3% 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 →H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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