American Electric Power Co Inc (AEP)vsPublic Service Enterprise Group Inc (PEG)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
PEG
Public Service Enterprise Group Inc
$81.07
+1.10%
UTILITIES · Cap: $40.03B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 80% more annual revenue ($21.88B vs $12.17B). PEG leads profitability with a 17.3% profit margin vs 16.4%. PEG appears more attractively valued with a PEG of 2.40. PEG earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy60
out of 100
Grade: C+
PEG
Buy64
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
+15.5%
Fair Value
$99.59
Current Price
$81.07
$18.52 discount
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
18.3% 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 : PEG
The strongest argument for PEG centers on Price/Book, Revenue Growth. Profitability is solid with margins at 17.3% and operating margin at 18.1%. Revenue growth of 18.3% 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 : PEG
The primary concerns for PEG are PEG Ratio, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while PEG is a growth play — different risk/reward profiles.
PEG carries more volatility with a beta of 0.58 — expect wider price swings.
PEG is growing revenue faster at 18.3% — sustainability is the question.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Bottom Line
PEG scores higher overall (64/100 vs 60/100), backed by strong 17.3% margins and 18.3% 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 →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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