WallStSmart

American Electric Power Co Inc (AEP)vsConsolidated Edison Inc (ED)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 30% more annual revenue ($22.43B vs $17.22B). AEP leads profitability with a 16.3% profit margin vs 12.5%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

ED

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 3/9Altman Z: 0.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

EDSignificantly Overvalued (-81.4%)

Margin of Safety

-81.4%

Fair Value

$60.57

Current Price

$106.26

$45.69 premium

UndervaluedFair: $60.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

ED2 strengths · Avg: 8.0/10
Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.6%8/10

Strong operational efficiency at 25.6%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

ED4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.063/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.562/10

Expensive relative to growth rate

Free Cash FlowQuality
$-999.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : ED

The strongest argument for ED centers on Price/Book, Operating Margin.

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : ED

The primary concerns for ED are Debt/Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AEP profiles as a mature stock while ED is a value play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.55 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

ED generates stronger free cash flow (-999M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 63/100), backed by strong 16.3% margins and 10.2% 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 →

Consolidated Edison Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Consolidated Edison, Inc., commonly known as Con Edison (stylized as conEdison) or ConEd, is one of the largest investor-owned energy companies in the United States, with approximately $12 billion in annual revenues as of 2017, and over $48 billion in assets. The company provides a wide range of energy-related products and services to its customers through its subsidiaries.

Visit Website →

Want to dig deeper into these stocks?