WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Duke Energy Corporation generates 44% more annual revenue ($32.80B vs $22.79B). DUK leads profitability with a 16.0% profit margin vs 13.8%. AEP appears more attractively valued with a PEG of 1.97. DUK earns a higher WallStSmart Score of 63/100 (C+).

AEP

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

DUK

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 4.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$66.18

Current Price

$120.00

$53.82 premium

UndervaluedFair: $66.18Overvalued
DUKSignificantly Overvalued (-76.3%)

Margin of Safety

-76.3%

Fair Value

$66.67

Current Price

$117.53

$50.86 premium

UndervaluedFair: $66.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.14B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

DUK4 strengths · Avg: 8.3/10
Market CapQuality
$93.11B9/10

Large-cap with strong market position

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.5%8/10

Strong operational efficiency at 27.5%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Debt/EquityHealth
1.663/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

DUK4 concerns · Avg: 3.5/10
PEG RatioValuation
2.224/10

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.

Bull Case : DUK

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

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 : 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 0.50 — expect wider price swings.

AEP is growing revenue faster at 7.0% — 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

DUK scores higher overall (63/100 vs 58/100), backed by strong 16.0% margins. 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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