American Electric Power Co Inc (AEP)vsEssential Utilities Inc (WTRG)
AEP
American Electric Power Co Inc
$123.33
-0.11%
UTILITIES · Cap: $67.14B
WTRG
Essential Utilities Inc
$41.07
-1.75%
UTILITIES · Cap: $11.90B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 787% more annual revenue ($22.79B vs $2.57B). WTRG leads profitability with a 21.6% profit margin vs 13.8%. 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
WTRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.9%
Fair Value
$65.98
Current Price
$123.33
$57.35 premium
Margin of Safety
+45.1%
Fair Value
$68.22
Current Price
$41.07
$27.15 discount
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%
Strong operational efficiency at 35.4%
Keeps 22 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
3.1% revenue growth
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.
Bull Case : WTRG
The strongest argument for WTRG centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.6% and operating margin at 35.4%.
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 : WTRG
The primary concerns for WTRG are Revenue Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
WTRG carries more volatility with a beta of 0.63 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
WTRG generates stronger free cash flow (-51M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (58/100 vs 56/100). WTRG offers better value entry with a 45.1% 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.
Visit Website →Essential Utilities Inc
UTILITIES · UTILITIES - REGULATED WATER · USA
Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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