American Electric Power Co Inc (AEP)vsThe Coca-Cola Company (KO)
AEP
American Electric Power Co Inc
$137.11
+1.99%
UTILITIES · Cap: $74.53B
KO
The Coca-Cola Company
$78.76
-0.14%
CONSUMER DEFENSIVE · Cap: $339.28B
Smart Verdict
WallStSmart Research — data-driven comparison
The Coca-Cola Company generates 125% more annual revenue ($49.28B vs $21.88B). KO leads profitability with a 27.8% profit margin vs 16.4%. AEP appears more attractively valued with a PEG of 2.82. KO earns a higher WallStSmart Score of 65/100 (B-).
AEP
Buy60
out of 100
Grade: C+
KO
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.0%
Fair Value
$76.88
Current Price
$137.11
$60.23 premium
Margin of Safety
-22.8%
Fair Value
$64.14
Current Price
$78.76
$14.62 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%
Mega-cap, among the largest globally
Every $100 of equity generates 43 in profit
Strong operational efficiency at 34.9%
Keeps 28 of every $100 in revenue as profit
Generating 2.9B in free cash flow
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Trading at 10.1x book value
Elevated debt levels
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. Profitability is solid with margins at 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : KO
The strongest argument for KO centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 34.9%. Revenue growth of 12.1% 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 : KO
The primary concerns for KO are Price/Book, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.57 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
KO generates stronger free cash flow (2.9B), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KO scores higher overall (65/100 vs 60/100), backed by strong 27.8% margins and 12.1% 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.
Visit Website →The Coca-Cola Company
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
The Coca-Cola Company is an American multinational beverage corporation incorporated under Delaware's General Corporation Law and headquartered in Atlanta, Georgia. The Coca-Cola Company has interests in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates and syrups.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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