WallStSmart

American Electric Power Co Inc (AEP)vsEntergy Corporation (ETR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 69% more annual revenue ($22.79B vs $13.48B). AEP leads profitability with a 13.8% profit margin vs 13.3%. ETR appears more attractively valued with a PEG of 1.62. ETR earns a higher WallStSmart Score of 58/100 (C).

AEP

Buy

58

out of 100

Grade: C

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

ETR

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 4.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
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
ETRSignificantly Overvalued (-59.5%)

Margin of Safety

-59.5%

Fair Value

$66.06

Current Price

$105.33

$39.27 premium

UndervaluedFair: $66.06Overvalued

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%

ETR3 strengths · Avg: 8.3/10
Market CapQuality
$50.32B9/10

Large-cap with strong market position

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

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

ETR4 concerns · Avg: 3.5/10
PEG RatioValuation
1.624/10

Expensive relative to growth rate

P/E RatioValuation
27.0x4/10

Moderate valuation

Debt/EquityHealth
1.883/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : ETR

The strongest argument for ETR centers on Market Cap, Price/Book, Operating Margin.

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 : ETR

The primary concerns for ETR are PEG Ratio, P/E Ratio, Debt/Equity. Debt-to-equity of 1.88 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.50 — expect wider price swings.

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

ETR generates stronger free cash flow (-935M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (58/100 vs 58/100). 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.

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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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