WallStSmart

American Electric Power Co Inc (AEP)vsEdison International (EIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 17% more annual revenue ($22.79B vs $19.42B). EIX leads profitability with a 19.3% profit margin vs 13.8%. AEP appears more attractively valued with a PEG of 1.97. EIX earns a higher WallStSmart Score of 71/100 (B).

AEP

Buy

58

out of 100

Grade: C

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

EIX

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 8.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-86.9%)

Margin of Safety

-86.9%

Fair Value

$65.98

Current Price

$123.33

$57.35 premium

UndervaluedFair: $65.98Overvalued
EIXOvervalued (-12.8%)

Margin of Safety

-12.8%

Fair Value

$59.45

Current Price

$56.00

$3.45 premium

UndervaluedFair: $59.45Overvalued

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
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

EIX5 strengths · Avg: 9.4/10
P/E RatioValuation
6.1x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
55.1%10/10

Earnings expanding 55.1% YoY

Return on EquityProfitability
21.9%9/10

Every $100 of equity generates 22 in profit

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

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

EIX4 concerns · Avg: 2.0/10
PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

Free Cash FlowQuality
$-576.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

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.

Bull Case : EIX

The strongest argument for EIX centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 19.3% and operating margin at 26.9%.

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 : EIX

The primary concerns for EIX are PEG Ratio, Revenue Growth, Free Cash Flow. Debt-to-equity of 2.48 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP profiles as a value stock while EIX is a declining play — different risk/reward profiles.

EIX carries more volatility with a beta of 0.61 — expect wider price swings.

AEP is growing revenue faster at 7.0% — sustainability is the question.

EIX generates stronger free cash flow (-576M), providing more financial flexibility.

Bottom Line

EIX scores higher overall (71/100 vs 58/100), backed by strong 19.3% margins. 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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Edison International

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Edison International is a public utility holding company based in Rosemead, California. Its subsidiaries include Southern California Edison, and unregulated non-utility business assets Edison Energy.

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