American Electric Power Co Inc (AEP)vsWaters Corporation (WAT)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 591% more annual revenue ($21.88B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 16.4%. WAT appears more attractively valued with a PEG of 1.25. WAT earns a higher WallStSmart Score of 60/100 (C).
AEP
Buy60
out of 100
Grade: C+
WAT
Buy60
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
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 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 22.8%
Strong operational efficiency at 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Moderate valuation
Earnings declined 3.1%
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 : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 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 : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
WAT generates stronger free cash flow (126M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (60/100 vs 60/100), backed by strong 16.4% margins and 13.2% 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 →Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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