American Electric Power Co Inc (AEP)vsPublic Service Enterprise Group Inc (PEG)
AEP
American Electric Power Co Inc
$127.79
+0.58%
UTILITIES · Cap: $69.16B
PEG
Public Service Enterprise Group Inc
$79.48
+1.79%
UTILITIES · Cap: $39.72B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 75% more annual revenue ($22.43B vs $12.79B). PEG leads profitability with a 17.7% profit margin vs 16.3%. AEP appears more attractively valued with a PEG of 2.27. PEG earns a higher WallStSmart Score of 66/100 (B-).
AEP
Buy64
out of 100
Grade: C+
PEG
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
-68.8%
Fair Value
$49.84
Current Price
$79.48
$29.64 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%
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.4%
19.4% revenue growth
Earnings expanding 25.4% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : PEG
The strongest argument for PEG centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 17.7% and operating margin at 28.4%. Revenue growth of 19.4% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : PEG
The primary concerns for PEG are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while PEG is a growth play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
PEG is growing revenue faster at 19.4% — sustainability is the question.
PEG generates stronger free cash flow (81M), providing more financial flexibility.
Bottom Line
PEG scores higher overall (66/100 vs 64/100), backed by strong 17.7% margins and 19.4% revenue growth. Both earn "Strong 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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