WallStSmart

American Electric Power Co Inc (AEP)vsAlphabet Inc Class A (GOOGL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class A generates 1741% more annual revenue ($402.84B vs $21.88B). GOOGL leads profitability with a 32.8% profit margin vs 16.4%. GOOGL appears more attractively valued with a PEG of 2.36. GOOGL earns a higher WallStSmart Score of 70/100 (B).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

GOOGL

Strong Buy

70

out of 100

Grade: B

Growth: 8.7Profit: 10.0Value: 6.0Quality: 8.5
Piotroski: 4/9Altman Z: 3.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$76.88

Current Price

$134.44

$57.56 premium

UndervaluedFair: $76.88Overvalued
GOOGLUndervalued (+43.5%)

Margin of Safety

+43.5%

Fair Value

$618.94

Current Price

$349.94

$269.00 discount

UndervaluedFair: $618.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$73.23B9/10

Large-cap with strong market position

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

GOOGL6 strengths · Avg: 10.0/10
Market CapQuality
$4.17T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
35.7%10/10

Every $100 of equity generates 36 in profit

Profit MarginProfitability
32.8%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
31.6%10/10

Strong operational efficiency at 31.6%

Free Cash FlowQuality
$10.12B10/10

Generating 10.1B in free cash flow

Altman Z-ScoreHealth
3.9110/10

Safe zone — low bankruptcy risk

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.832/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

GOOGL3 concerns · Avg: 4.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

Comparative Analysis Report

WallStSmart Research

Bull 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 : GOOGL

The strongest argument for GOOGL centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 32.8% and operating margin at 31.6%. Revenue growth of 18.0% 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 : GOOGL

The primary concerns for GOOGL are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

AEP profiles as a mature stock while GOOGL is a growth play — different risk/reward profiles.

GOOGL carries more volatility with a beta of 1.13 — expect wider price swings.

GOOGL is growing revenue faster at 18.0% — sustainability is the question.

GOOGL generates stronger free cash flow (10.1B), providing more financial flexibility.

Bottom Line

GOOGL scores higher overall (70/100 vs 60/100), backed by strong 32.8% margins and 18.0% 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 →

Alphabet Inc Class A

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

Visit Website →

Want to dig deeper into these stocks?