WallStSmart

American Electric Power Co Inc (AEP)vsPG&E Corp (PCG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PG&E Corp generates 14% more annual revenue ($24.93B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 10.4%. PCG appears more attractively valued with a PEG of 0.76. PCG earns a higher WallStSmart Score of 63/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

PCG

Buy

63

out of 100

Grade: C+

Growth: 3.3Profit: 6.0Value: 7.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.46
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
PCGSignificantly Overvalued (-113.2%)

Margin of Safety

-113.2%

Fair Value

$8.02

Current Price

$17.44

$9.42 premium

UndervaluedFair: $8.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

PCG4 strengths · Avg: 8.5/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.768/10

Growing faster than its price suggests

P/E RatioValuation
14.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

PCG4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.6%4/10

2.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-3.3%2/10

Earnings declined 3.3%

Free Cash FlowQuality
$-1.20B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : PCG

The strongest argument for PCG centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.76 suggests the stock is reasonably priced for its growth.

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 : PCG

The primary concerns for PCG are Revenue Growth, Piotroski F-Score, EPS Growth.

Key Dynamics to Monitor

AEP profiles as a mature stock while PCG 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.

AEP generates stronger free cash flow (-246M), providing more financial flexibility.

Bottom Line

PCG scores higher overall (63/100 vs 60/100). 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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PG&E Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, is engaged in the sale and delivery of electricity and natural gas to customers in northern and central California, United States. The company is headquartered in San Francisco, California.

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