American Electric Power Co Inc (AEP)vsPublic Service Enterprise Group Inc (PEG)
AEP
American Electric Power Co Inc
$123.33
-0.11%
UTILITIES · Cap: $67.14B
PEG
Public Service Enterprise Group Inc
$72.39
-0.12%
UTILITIES · Cap: $36.89B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 82% more annual revenue ($22.79B vs $12.54B). PEG leads profitability with a 16.0% profit margin vs 13.8%. AEP appears more attractively valued with a PEG of 1.97. AEP earns a higher WallStSmart Score of 58/100 (C).
AEP
Buy58
out of 100
Grade: C
PEG
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.9%
Fair Value
$65.98
Current Price
$123.33
$57.35 premium
Margin of Safety
-70.1%
Fair Value
$49.46
Current Price
$72.39
$22.93 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 23.3%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
Elevated debt levels
Expensive relative to growth rate
Revenue declined 8.9%
Earnings declined 42.7%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.
Bull Case : PEG
The strongest argument for PEG centers on Price/Book. Profitability is solid with margins at 16.0% and operating margin at 18.9%.
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 : PEG
The primary concerns for PEG are Debt/Equity, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
AEP profiles as a value stock while PEG is a declining play — different risk/reward profiles.
PEG carries more volatility with a beta of 0.53 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
PEG generates stronger free cash flow (498M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (58/100 vs 50/100). 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.
Visit Website →Public Service Enterprise Group Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
The Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey.
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