WallStSmart

American Electric Power Co Inc (AEP)vsAlliant Energy Corp (LNT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 402% more annual revenue ($21.88B vs $4.36B). LNT leads profitability with a 18.6% profit margin vs 16.4%. LNT appears more attractively valued with a PEG of 2.34. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

LNT

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.79
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
LNTSignificantly Overvalued (-219.6%)

Margin of Safety

-219.6%

Fair Value

$21.35

Current Price

$69.77

$48.42 premium

UndervaluedFair: $21.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

LNT1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.772/10

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

LNT4 concerns · Avg: 3.0/10
PEG RatioValuation
2.344/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-5.8%2/10

Earnings declined 5.8%

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 : LNT

The strongest argument for LNT centers on Price/Book. Profitability is solid with margins at 18.6% and operating margin at 16.7%.

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 : LNT

The primary concerns for LNT are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Key Dynamics to Monitor

LNT carries more volatility with a beta of 0.61 — expect wider price swings.

AEP is growing revenue faster at 13.2% — 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

AEP scores higher overall (60/100 vs 54/100), backed by strong 16.4% margins and 13.2% 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.

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Alliant Energy Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Alliant Energy is a public utility holding company headquartered in Madison, Wisconsin providing power in Iowa and Wisconsin.

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