American Electric Power Co Inc (AEP)vsNorthWestern Corporation (NWE)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
NWE
NorthWestern Corporation
$65.36
+0.21%
UTILITIES · Cap: $4.01B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 1258% more annual revenue ($21.88B vs $1.61B). AEP leads profitability with a 16.4% profit margin vs 11.2%. NWE appears more attractively valued with a PEG of 2.38. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
NWE
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-242.4%
Fair Value
$19.99
Current Price
$65.36
$45.37 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
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
ROE of 6.3% — below average capital efficiency
Elevated debt levels
Weak financial health signals
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 : NWE
The strongest argument for NWE centers on Price/Book. Revenue growth of 10.9% 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 : NWE
The primary concerns for NWE are PEG Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AEP profiles as a mature stock while NWE 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.
NWE generates stronger free cash flow (-94M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 55/100), backed by strong 16.4% margins and 13.2% 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 →NorthWestern Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial and industrial customers. The company is headquartered in Sioux Falls, South Dakota.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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