American Electric Power Co Inc (AEP)vsMcKesson Corporation (MCK)
AEP
American Electric Power Co Inc
$137.11
+1.99%
UTILITIES · Cap: $74.53B
MCK
McKesson Corporation
$815.20
-0.90%
HEALTHCARE · Cap: $99.85B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1719% more annual revenue ($397.96B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 1.1%. MCK appears more attractively valued with a PEG of 1.00. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
MCK
Buy57
out of 100
Grade: C
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
+63.8%
Fair Value
$2631.85
Current Price
$815.20
$1816.65 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 22.8%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Growing faster than its price suggests
Earnings expanding 38.0% YoY
Generating 1.1B 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
ROE of 0.0% — below average capital efficiency
1.1% margin — thin
Operating margin of 1.6%
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 : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. Revenue growth of 11.4% demonstrates continued momentum. PEG of 1.00 suggests the stock is reasonably priced for its growth.
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 : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
AEP profiles as a mature stock while MCK is a value play — different risk/reward profiles.
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.
MCK generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 57/100), backed by strong 16.4% margins and 13.2% revenue growth. MCK offers better value entry with a 63.8% 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 →McKesson Corporation
HEALTHCARE · MEDICAL DISTRIBUTION · USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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