WallStSmart

American Electric Power Co Inc (AEP)vsInteractive Brokers Group Inc (IBKR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 239% more annual revenue ($21.88B vs $6.45B). AEP leads profitability with a 16.4% profit margin vs 16.1%. IBKR appears more attractively valued with a PEG of 2.08. IBKR earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

IBKR

Buy

64

out of 100

Grade: C+

Growth: 8.7Profit: 7.5Value: 4.3Quality: 5.3
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-58.4%)

Margin of Safety

-58.4%

Fair Value

$77.18

Current Price

$137.11

$59.93 premium

UndervaluedFair: $77.18Overvalued

Intrinsic value data unavailable for IBKR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$74.53B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

IBKR6 strengths · Avg: 9.0/10
Operating MarginProfitability
76.8%10/10

Strong operational efficiency at 76.8%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Market CapQuality
$135.17B9/10

Large-cap with strong market position

Return on EquityProfitability
23.6%9/10

Every $100 of equity generates 24 in profit

Revenue GrowthGrowth
16.8%8/10

16.8% revenue growth

EPS GrowthGrowth
21.6%8/10

Earnings expanding 21.6% YoY

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.822/10

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

IBKR3 concerns · Avg: 3.7/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : IBKR

The strongest argument for IBKR centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 16.1% and operating margin at 76.8%. Revenue growth of 16.8% demonstrates continued momentum.

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 : IBKR

The primary concerns for IBKR are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

AEP profiles as a mature stock while IBKR is a growth play — different risk/reward profiles.

IBKR carries more volatility with a beta of 1.26 — expect wider price swings.

IBKR is growing revenue faster at 16.8% — sustainability is the question.

IBKR generates stronger free cash flow (1.6B), providing more financial flexibility.

Bottom Line

IBKR scores higher overall (64/100 vs 60/100), backed by strong 16.1% margins and 16.8% 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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Interactive Brokers Group Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Interactive Brokers Group, Inc. is a global automated electronic broker. The company is headquartered in Greenwich, Connecticut.

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