WallStSmart

American Electric Power Co Inc (AEP)vsMoodys Corporation (MCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 185% more annual revenue ($22.43B vs $7.87B). MCO leads profitability with a 31.7% profit margin vs 16.3%. MCO appears more attractively valued with a PEG of 2.11. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

MCO

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 9.5Value: 4.3Quality: 6.0
Piotroski: 6/9Altman Z: 3.17

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

MCO5 strengths · Avg: 9.8/10
Return on EquityProfitability
83.3%10/10

Every $100 of equity generates 83 in profit

Profit MarginProfitability
31.7%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
45.7%10/10

Strong operational efficiency at 45.7%

Altman Z-ScoreHealth
3.1710/10

Safe zone — low bankruptcy risk

Market CapQuality
$79.23B9/10

Large-cap with strong market position

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

MCO4 concerns · Avg: 2.8/10
PEG RatioValuation
2.114/10

Expensive relative to growth rate

P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
26.3x2/10

Trading at 26.3x book value

Debt/EquityHealth
2.441/10

Elevated debt levels

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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : MCO

The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.7% and operating margin at 45.7%.

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 : MCO

The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.44 is elevated, increasing financial risk.

Key Dynamics to Monitor

MCO carries more volatility with a beta of 1.37 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

MCO generates stronger free cash flow (844M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (64/100 vs 61/100), 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.

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Moodys Corporation

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.

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