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 609% more annual revenue ($21.88B vs $3.09B). AEP leads profitability with a 16.4% profit margin vs 4.0%. HE appears more attractively valued with a PEG of 2.41. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

HE

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 4.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
HESignificantly Overvalued (-243.5%)

Margin of Safety

-243.5%

Fair Value

$4.83

Current Price

$14.94

$10.11 premium

UndervaluedFair: $4.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

HE1 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.772/10

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

HE4 concerns · Avg: 3.5/10
PEG RatioValuation
2.414/10

Expensive relative to growth rate

Revenue GrowthGrowth
0.8%4/10

0.8% revenue growth

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

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 : HE

The strongest argument for HE centers on Price/Book.

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 : HE

The primary concerns for HE are PEG Ratio, Revenue Growth, Return on Equity. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

AEP carries more volatility with a beta of 0.57 — expect wider price swings.

AEP is growing revenue faster at 13.2% — sustainability is the question.

HE generates stronger free cash flow (21M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (60/100 vs 48/100), backed by strong 16.4% margins and 13.2% revenue growth. Both earn "Buy" and "Hold" 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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