WallStSmart

American Electric Power Co Inc (AEP)vsH2O America (HTO)

VS

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

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

HTO

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.5Value: 6.0Quality: 4.0
Piotroski: 1/9Altman Z: 0.68
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

HTOUndervalued (+30.1%)

Margin of Safety

+30.1%

Fair Value

$74.38

Current Price

$62.66

$11.72 discount

UndervaluedFair: $74.38Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.87B9/10

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%

HTO2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

HTO4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Debt/EquityHealth
1.023/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.682/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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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