WallStSmart

American Electric Power Co Inc (AEP)vsHawaiian Electric Industries Inc (HE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 594% more annual revenue ($22.79B vs $3.28B). AEP leads profitability with a 13.8% profit margin vs 6.8%. AEP appears more attractively valued with a PEG of 1.97. HE earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

58

out of 100

Grade: C

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

HE

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 4.0Value: 7.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.54
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
HEUndervalued (+33.1%)

Margin of Safety

+33.1%

Fair Value

$24.79

Current Price

$10.38

$14.41 discount

UndervaluedFair: $24.79Overvalued

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%

HE4 strengths · Avg: 9.5/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
373.3%10/10

Earnings expanding 373.3% YoY

Revenue GrowthGrowth
25.9%8/10

Revenue surging 25.9% year-over-year

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

HE4 concerns · Avg: 3.0/10
Market CapQuality
$1.78B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
8.0%3/10

ROE of 8.0% — below average capital efficiency

Profit MarginProfitability
6.8%3/10

6.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

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

Bull Case : HE

The strongest argument for HE centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 25.9% demonstrates continued momentum.

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 : HE

The primary concerns for HE are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP profiles as a value stock while HE is a growth play — different risk/reward profiles.

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

HE is growing revenue faster at 25.9% — sustainability is the question.

HE generates stronger free cash flow (-550M), providing more financial flexibility.

Bottom Line

HE scores higher overall (64/100 vs 58/100) and 25.9% 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.

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Hawaiian Electric Industries Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Hawaiian Electric Industries, Inc. is engaged in the renewable / sustainable infrastructure, banking and electricity utility investment businesses in the State of Hawaii. The company is headquartered in Honolulu, Hawaii.

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