American Electric Power Co Inc (AEP)vsEaton Corporation PLC (ETN)
AEP
American Electric Power Co Inc
$134.44
-0.85%
UTILITIES · Cap: $73.23B
ETN
Eaton Corporation PLC
$410.77
-0.56%
INDUSTRIALS · Cap: $164.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Eaton Corporation PLC generates 25% more annual revenue ($27.45B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 14.9%. AEP appears more attractively valued with a PEG of 2.83. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
ETN
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.0%
Fair Value
$76.88
Current Price
$134.44
$57.56 premium
Intrinsic value data unavailable for ETN.
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%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Trading at 8.2x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : ETN
The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.
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 : ETN
The primary concerns for ETN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 40.5x leaves little room for execution misses.
Key Dynamics to Monitor
AEP profiles as a mature stock while ETN is a value play — different risk/reward profiles.
ETN carries more volatility with a beta of 1.16 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 59/100), backed by strong 16.4% margins and 13.2% 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 →Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.
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