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 29% more annual revenue ($22.79B vs $17.69B). NGG leads profitability with a 18.3% profit margin vs 13.8%. NGG appears more attractively valued with a PEG of 0.96. NGG earns a higher WallStSmart Score of 62/100 (C+).

AEP

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

NGG

Buy

62

out of 100

Grade: C+

Growth: 4.0Profit: 8.0Value: 7.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.19
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$66.18

Current Price

$120.00

$53.82 premium

UndervaluedFair: $66.18Overvalued

Intrinsic value data unavailable for NGG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.14B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

NGG4 strengths · Avg: 8.8/10
Operating MarginProfitability
32.6%10/10

Strong operational efficiency at 32.6%

Market CapQuality
$77.27B9/10

Large-cap with strong market position

PEG RatioValuation
0.968/10

Growing faster than its price suggests

P/E RatioValuation
17.2x8/10

Attractively priced relative to earnings

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Debt/EquityHealth
1.663/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

NGG4 concerns · Avg: 3.5/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Debt/EquityHealth
1.193/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : NGG

The strongest argument for NGG centers on Operating Margin, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 32.6%. PEG of 0.96 suggests the stock is reasonably priced for its growth.

Bear Case : AEP

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

Bear Case : NGG

The primary concerns for NGG are Price/Book, Revenue Growth, Debt/Equity.

Key Dynamics to Monitor

NGG carries more volatility with a beta of 0.59 — expect wider price swings.

AEP is growing revenue faster at 7.0% — 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

NGG scores higher overall (62/100 vs 58/100), backed by strong 18.3% margins. 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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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.

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