American Electric Power Co Inc (AEP)vsMcKesson Corporation (MCK)
AEP
American Electric Power Co Inc
$127.79
+0.06%
UTILITIES · Cap: $69.16B
MCK
McKesson Corporation
$775.66
+2.47%
HEALTHCARE · Cap: $88.56B
Smart Verdict
WallStSmart Research — data-driven comparison
McKesson Corporation generates 1698% more annual revenue ($403.43B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 1.2%. MCK appears more attractively valued with a PEG of 1.44. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
MCK
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
-69.6%
Fair Value
$561.89
Current Price
$775.66
$213.77 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 23.7%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 37.2% YoY
Generating 3.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
1.2% margin — thin
Operating margin of 2.2%
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 : MCK
The strongest argument for MCK centers on Debt/Equity, Altman Z-Score, Market Cap. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : MCK
The primary concerns for MCK are Return on Equity, Profit Margin, Operating Margin. Thin 1.2% 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 0.55 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
MCK generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 55/100), backed by strong 16.3% margins and 10.2% 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.
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
Want to dig deeper into these stocks?