American Electric Power Co Inc (AEP)vsSempra Energy (SRE)
AEP
American Electric Power Co Inc
$127.79
+0.58%
UTILITIES · Cap: $69.16B
SRE
Sempra Energy
$90.34
+0.82%
UTILITIES · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 65% more annual revenue ($22.43B vs $13.55B). AEP leads profitability with a 16.3% profit margin vs 14.4%. SRE appears more attractively valued with a PEG of 0.78. SRE earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
SRE
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
-51.4%
Fair Value
$60.40
Current Price
$90.34
$29.94 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%
Strong operational efficiency at 30.6%
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Premium valuation, high expectations priced in
ROE of 6.4% — below average capital efficiency
Elevated debt levels
Revenue declined 3.9%
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 : SRE
The strongest argument for SRE centers on Operating Margin, Market Cap, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.
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 : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AEP profiles as a mature stock while SRE is a declining play — different risk/reward profiles.
SRE carries more volatility with a beta of 0.60 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
SRE generates stronger free cash flow (-652M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 64/100), backed by strong 16.3% margins and 10.2% 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 →Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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