American Electric Power Co Inc (AEP)vsEversource Energy (ES)
AEP
American Electric Power Co Inc
$125.66
-2.38%
UTILITIES · Cap: $67.96B
ES
Eversource Energy
$66.67
-4.24%
UTILITIES · Cap: $25.03B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 61% more annual revenue ($21.88B vs $13.55B). AEP leads profitability with a 16.4% profit margin vs 12.5%. ES appears more attractively valued with a PEG of 0.96. ES earns a higher WallStSmart Score of 79/100 (B+).
AEP
Buy60
out of 100
Grade: C+
ES
Strong Buy79
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-176.6%
Fair Value
$44.20
Current Price
$125.66
$81.46 premium
Margin of Safety
+67.1%
Fair Value
$213.41
Current Price
$66.67
$146.74 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.8%
Earnings expanding 466.2% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 22.1%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : ES
The strongest argument for ES centers on EPS Growth, PEG Ratio, P/E Ratio. Revenue growth of 13.4% demonstrates continued momentum. PEG of 0.96 suggests the stock is reasonably priced for its growth.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : ES
The primary concerns for ES are Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while ES is a value play — different risk/reward profiles.
ES carries more volatility with a beta of 0.75 — expect wider price swings.
ES is growing revenue faster at 13.4% — sustainability is the question.
ES generates stronger free cash flow (-67M), providing more financial flexibility.
Bottom Line
ES scores higher overall (79/100 vs 60/100) and 13.4% 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.
Visit Website →Eversource Energy
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Eversource Energy is a publicly traded, Fortune 500 energy company headquartered in Hartford, Connecticut, and Boston, Massachusetts.
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