American Electric Power Co Inc (AEP)vsH2O America (HTO)
AEP
American Electric Power Co Inc
$125.73
+0.38%
UTILITIES · Cap: $69.87B
HTO
H2O America
$62.66
+1.42%
UTILITIES · Cap: $2.57B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 2651% more annual revenue ($22.79B vs $828.50M). AEP leads profitability with a 13.8% profit margin vs 12.9%. AEP appears more attractively valued with a PEG of 2.18. AEP earns a higher WallStSmart Score of 56/100 (C).
AEP
Buy56
out of 100
Grade: C
HTO
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
+30.1%
Fair Value
$74.38
Current Price
$62.66
$11.72 discount
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 23.3%
Reasonable price relative to book value
Strong operational efficiency at 21.3%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.
Bull Case : HTO
The strongest argument for HTO centers on Price/Book, Operating Margin.
Bear Case : AEP
The primary concerns for AEP are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : HTO
The primary concerns for HTO are Return on Equity, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.51 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
HTO generates stronger free cash flow (-49M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (56/100 vs 55/100). HTO offers better value entry with a 30.1% margin of safety. 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 →H2O America
UTILITIES · UTILITIES - REGULATED WATER · USA
H2O America, provides water utility and other related services in the United States. The company is headquartered in San Jose, California.
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