American Electric Power Co Inc (AEP)vsH2O America (HTO)
AEP
American Electric Power Co Inc
$130.30
+0.91%
UTILITIES · Cap: $70.36B
HTO
H2O America
$56.70
+1.56%
UTILITIES · Cap: $2.39B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 2648% more annual revenue ($22.43B vs $816.28M). AEP leads profitability with a 16.3% profit margin vs 12.9%. AEP appears more attractively valued with a PEG of 2.37. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
HTO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
+14.3%
Fair Value
$60.66
Current Price
$56.70
$3.96 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 23.7%
Reasonable price relative to book value
Strong operational efficiency at 21.5%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
0.0% earnings growth
ROE of 6.5% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
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, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : HTO
The primary concerns for HTO are EPS Growth, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AEP profiles as a mature stock while HTO is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.52 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
HTO generates stronger free cash flow (-49M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 57/100), backed by strong 16.3% margins and 10.2% 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.
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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