American Electric Power Co Inc (AEP)vsEntergy Corporation (ETR)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
ETR
Entergy Corporation
$111.59
-0.38%
UTILITIES · Cap: $53.45B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 69% more annual revenue ($22.43B vs $13.29B). AEP leads profitability with a 16.3% profit margin vs 13.4%. ETR appears more attractively valued with a PEG of 2.32. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
ETR
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
-33.4%
Fair Value
$75.11
Current Price
$111.59
$36.48 premium
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 23.7%
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
1.2% earnings growth
Negative free cash flow — burning cash
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : ETR
The strongest argument for ETR centers on Market Cap, Price/Book. Revenue growth of 12.0% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : ETR
The primary concerns for ETR are PEG Ratio, P/E Ratio, EPS Growth.
Key Dynamics to Monitor
AEP profiles as a mature stock while ETR is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
ETR is growing revenue faster at 12.0% — sustainability is the question.
AEP generates stronger free cash flow (-1.3B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 53/100), 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 →Entergy Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Entergy Corporation is a Fortune 500 integrated energy company engaged primarily in electric power production and retail distribution operations in the Deep South of the United States.
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