WallStSmart

American Electric Power Co Inc (AEP)vsDominion Energy Inc (D)

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Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 23% more annual revenue ($23.61B vs $19.21B). AEP leads profitability with a 14.2% profit margin vs 14.0%. D appears more attractively valued with a PEG of 2.59. D earns a higher WallStSmart Score of 66/100 (B-).

AEP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

D

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-88.4%)

Margin of Safety

-88.4%

Fair Value

$69.11

Current Price

$129.86

$60.75 premium

UndervaluedFair: $69.11Overvalued
DSignificantly Overvalued (-19.9%)

Margin of Safety

-19.9%

Fair Value

$53.92

Current Price

$66.78

$12.86 premium

UndervaluedFair: $53.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.90B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

D4 strengths · Avg: 8.8/10
Operating MarginProfitability
32.8%10/10

Strong operational efficiency at 32.8%

Market CapQuality
$58.60B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
24.1%8/10

Revenue surging 24.1% year-over-year

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

D4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.853/10

Elevated debt levels

PEG RatioValuation
2.592/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.20B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.552/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : D

The strongest argument for D centers on Operating Margin, Market Cap, Price/Book. Revenue growth of 24.1% demonstrates continued momentum.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : D

The primary concerns for D are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP profiles as a value stock while D is a growth play — different risk/reward profiles.

D carries more volatility with a beta of 0.62 — expect wider price swings.

D is growing revenue faster at 24.1% — sustainability is the question.

AEP generates stronger free cash flow (-969M), providing more financial flexibility.

Bottom Line

D scores higher overall (66/100 vs 64/100) and 24.1% revenue growth. Both earn "Strong 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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Dominion Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Dominion Energy, Inc., commonly referred to as Dominion, is an American power and energy company headquartered in Richmond, Virginia that supplies electricity in parts of Virginia, North Carolina, and South Carolina and supplies natural gas to parts of Utah, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina, and Georgia. Dominion also has generation facilities in Indiana, Illinois, Connecticut, and Rhode Island.

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