WallStSmart

American Electric Power Co Inc (AEP)vsDuke Energy Corporation (DUK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Duke Energy Corporation generates 39% more annual revenue ($32.80B vs $23.61B). DUK leads profitability with a 16.0% profit margin vs 14.2%. DUK appears more attractively valued with a PEG of 2.37. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

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

DUK

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.52
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
DUKSignificantly Overvalued (-89.7%)

Margin of Safety

-89.7%

Fair Value

$67.16

Current Price

$128.38

$61.22 premium

UndervaluedFair: $67.16Overvalued

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%

DUK3 strengths · Avg: 8.3/10
Market CapQuality
$99.33B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.5%8/10

Strong operational efficiency at 27.5%

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

DUK4 concerns · Avg: 3.5/10
PEG RatioValuation
2.374/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Debt/EquityHealth
1.673/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : DUK

The strongest argument for DUK centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.0% and operating margin at 27.5%.

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 : DUK

The primary concerns for DUK are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.47 — expect wider price swings.

AEP is growing revenue faster at 13.7% — sustainability is the question.

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

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (64/100 vs 63/100) and 13.7% 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.

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Duke Energy Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Duke Energy Corporation is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina.

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