WallStSmart

American Electric Power Co Inc (AEP)vsNational Grid PLC ADR (NGG)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 33% more annual revenue ($23.61B vs $17.69B). NGG leads profitability with a 18.3% profit margin vs 14.2%. NGG appears more attractively valued with a PEG of 2.15. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

NGG

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.0Value: 5.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-88.4%)

Margin of Safety

-88.4%

Fair Value

$69.11

Current Price

$129.86

$60.75 premium

UndervaluedFair: $69.11Overvalued

Intrinsic value data unavailable for NGG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.90B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

NGG2 strengths · Avg: 9.5/10
Operating MarginProfitability
32.6%10/10

Strong operational efficiency at 32.6%

Market CapQuality
$84.40B9/10

Large-cap with strong market position

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

NGG4 concerns · Avg: 3.8/10
PEG RatioValuation
2.154/10

Expensive relative to growth rate

Price/BookValuation
9.6x4/10

Trading at 9.6x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Debt/EquityHealth
1.193/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : NGG

The strongest argument for NGG centers on Operating Margin, Market Cap. Profitability is solid with margins at 18.3% and operating margin at 32.6%.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : NGG

The primary concerns for NGG are PEG Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

NGG carries more volatility with a beta of 0.58 — expect wider price swings.

AEP is growing revenue faster at 13.7% — sustainability is the question.

AEP generates stronger free cash flow (-969M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (64/100 vs 56/100) and 13.7% 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 →

National Grid PLC ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

National Grid plc transmits and distributes electricity and natural gas. The company is headquartered in London, the United Kingdom.

Visit Website →

Want to dig deeper into these stocks?