American Electric Power Co Inc (AEP)vsPinnacle West Capital Corp (PNW)
AEP
American Electric Power Co Inc
$120.27
+0.20%
UTILITIES · Cap: $67.14B
PNW
Pinnacle West Capital Corp
$93.16
-0.16%
UTILITIES · Cap: $11.31B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 310% more annual revenue ($22.79B vs $5.55B). AEP leads profitability with a 13.8% profit margin vs 11.5%. 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
PNW
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-82.4%
Fair Value
$66.18
Current Price
$120.27
$54.09 premium
Margin of Safety
-24.9%
Fair Value
$76.91
Current Price
$93.16
$16.25 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 23.3%
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Earnings declined 9.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.
Bull Case : PNW
The strongest argument for PNW centers on P/E Ratio, Price/Book, Operating Margin.
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 : PNW
The primary concerns for PNW are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.62 is elevated, increasing financial risk.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.50 — expect wider price swings.
PNW is growing revenue faster at 7.1% — sustainability is the question.
PNW generates stronger free cash flow (-335M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (58/100 vs 55/100). 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 →Pinnacle West Capital Corp
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.
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