American Electric Power Co Inc (AEP)vsAltria Group (MO)
AEP
American Electric Power Co Inc
$127.79
+0.58%
UTILITIES · Cap: $69.16B
MO
Altria Group
$70.60
+0.74%
CONSUMER DEFENSIVE · Cap: $115.62B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 10% more annual revenue ($22.43B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 16.3%. MO appears more attractively valued with a PEG of 1.57. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
MO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
-59.0%
Fair Value
$45.41
Current Price
$70.60
$25.19 premium
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%
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 62.3%
Earnings expanding 106.3% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
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 : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.
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 : MO
The primary concerns for MO are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
MO generates stronger free cash flow (2.2B), 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.
Visit Website →Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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