American Electric Power Co Inc (AEP)vsPACCAR Inc (PCAR)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
PCAR
PACCAR Inc
$114.31
+0.23%
INDUSTRIALS · Cap: $60.02B
Smart Verdict
WallStSmart Research — data-driven comparison
PACCAR Inc generates 24% more annual revenue ($27.78B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 8.9%. PCAR appears more attractively valued with a PEG of 1.19. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
PCAR
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
-24.4%
Fair Value
$104.06
Current Price
$114.31
$10.25 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%
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Weak financial health signals
Revenue declined 8.9%
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 : PCAR
The strongest argument for PCAR centers on Market Cap. PEG of 1.19 suggests the stock is reasonably priced for its growth.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : PCAR
The primary concerns for PCAR are Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
AEP profiles as a mature stock while PCAR is a value play — different risk/reward profiles.
PCAR carries more volatility with a beta of 1.03 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
PCAR generates stronger free cash flow (825M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 54/100), 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 →PACCAR Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
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