WallStSmart

American Electric Power Co Inc (AEP)vsRGC Resources Inc (RGCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 22153% more annual revenue ($21.88B vs $98.31M). AEP leads profitability with a 16.4% profit margin vs 13.1%. RGCO appears more attractively valued with a PEG of 1.30. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

RGCO

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$76.88

Current Price

$137.11

$60.23 premium

UndervaluedFair: $76.88Overvalued
RGCOUndervalued (+15.4%)

Margin of Safety

+15.4%

Fair Value

$25.63

Current Price

$22.73

$2.90 discount

UndervaluedFair: $25.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$74.53B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

RGCO3 strengths · Avg: 8.0/10
P/E RatioValuation
17.7x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.822/10

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

RGCO4 concerns · Avg: 2.5/10
Market CapQuality
$229.51M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.343/10

Elevated debt levels

EPS GrowthGrowth
-7.8%2/10

Earnings declined 7.8%

Free Cash FlowQuality
$-4.56M2/10

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 : RGCO

The strongest argument for RGCO centers on P/E Ratio, Price/Book, Operating Margin. Revenue growth of 10.9% demonstrates continued momentum. PEG of 1.30 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 : RGCO

The primary concerns for RGCO are Market Cap, Debt/Equity, EPS Growth.

Key Dynamics to Monitor

AEP profiles as a mature stock while RGCO 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.

RGCO generates stronger free cash flow (-5M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (60/100 vs 57/100), backed by strong 16.4% margins and 13.2% revenue growth. RGCO offers better value entry with a 15.4% margin of safety. 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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RGC Resources Inc

UTILITIES · UTILITIES - REGULATED GAS · USA

RGC Resources, Inc. is an energy services company. The company is headquartered in Roanoke, Virginia.

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