American Electric Power Co Inc (AEP)vsNational Grid PLC ADR (NGG)
AEP
American Electric Power Co Inc
$125.66
-2.38%
UTILITIES · Cap: $67.96B
NGG
National Grid PLC ADR
$81.99
-4.14%
UTILITIES · Cap: $85.04B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 25% more annual revenue ($21.88B vs $17.48B). NGG leads profitability with a 16.4% profit margin vs 16.4%. NGG appears more attractively valued with a PEG of 1.09. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
NGG
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-176.6%
Fair Value
$44.20
Current Price
$125.66
$81.46 premium
Margin of Safety
-234.1%
Fair Value
$27.13
Current Price
$81.99
$54.86 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 22.8%
Large-cap with strong market position
Strong operational efficiency at 24.1%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Trading at 8.2x book value
ROE of 7.9% — below average capital efficiency
Elevated debt levels
Revenue declined 11.3%
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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : NGG
The strongest argument for NGG centers on Market Cap, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 24.1%. PEG of 1.09 suggests the stock is reasonably priced for its growth.
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 : NGG
The primary concerns for NGG are Price/Book, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AEP profiles as a mature stock while NGG is a declining play — different risk/reward profiles.
NGG carries more volatility with a beta of 0.61 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 50/100), backed by strong 16.4% margins and 13.2% 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 →National Grid PLC ADR
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
National Grid plc transmits and distributes electricity and natural gas. The company is headquartered in London, the United Kingdom.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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