American Electric Power Co Inc (AEP)vsNiSource Inc (NI)
AEP
American Electric Power Co Inc
$137.11
+1.99%
UTILITIES · Cap: $74.53B
NI
NiSource Inc
$48.28
+0.21%
UTILITIES · Cap: $23.06B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 229% more annual revenue ($21.88B vs $6.64B). AEP leads profitability with a 16.4% profit margin vs 14.0%. NI appears more attractively valued with a PEG of 2.76. NI earns a higher WallStSmart Score of 62/100 (C+).
AEP
Buy60
out of 100
Grade: C+
NI
Buy62
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
-86.6%
Fair Value
$23.93
Current Price
$48.28
$24.35 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 22.8%
Reasonable price relative to book value
Strong operational efficiency at 27.0%
19.8% revenue growth
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : NI
The strongest argument for NI centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 19.8% demonstrates continued momentum.
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 : NI
The primary concerns for NI are PEG Ratio, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while NI is a growth play — different risk/reward profiles.
NI carries more volatility with a beta of 0.61 — expect wider price swings.
NI is growing revenue faster at 19.8% — sustainability is the question.
NI generates stronger free cash flow (-134M), providing more financial flexibility.
Bottom Line
NI scores higher overall (62/100 vs 60/100) and 19.8% 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 →NiSource Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
NiSource Inc. is one of the largest fully regulated utility companies in the United States. The company is based in Merrillville, Indiana.
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