WallStSmart

American Electric Power Co Inc (AEP)vsNewJersey Resources Corporation (NJR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 916% more annual revenue ($21.88B vs $2.15B). AEP leads profitability with a 16.4% profit margin vs 15.2%. NJR appears more attractively valued with a PEG of 2.23. NJR earns a higher WallStSmart Score of 61/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

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

NJR

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$76.88

Current Price

$137.11

$60.23 premium

UndervaluedFair: $76.88Overvalued
NJRSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$39.24

Current Price

$55.40

$16.16 premium

UndervaluedFair: $39.24Overvalued

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%

NJR4 strengths · Avg: 8.0/10
P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

Revenue GrowthGrowth
23.9%8/10

Revenue surging 23.9% year-over-year

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

NJR4 concerns · Avg: 2.5/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.6%2/10

Earnings declined 7.6%

Free Cash FlowQuality
$-139.67M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

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 : NJR

The strongest argument for NJR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 29.6%. Revenue growth of 23.9% 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 : NJR

The primary concerns for NJR are PEG Ratio, EPS Growth, Free Cash Flow.

Key Dynamics to Monitor

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

AEP carries more volatility with a beta of 0.57 — expect wider price swings.

NJR is growing revenue faster at 23.9% — sustainability is the question.

NJR generates stronger free cash flow (-140M), providing more financial flexibility.

Bottom Line

NJR scores higher overall (61/100 vs 60/100), backed by strong 15.2% margins and 23.9% 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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NewJersey Resources Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

New Jersey Resources Corporation, an energy services portfolio company, provides regulated gas distribution and retail and wholesale energy services. The company is headquartered in Wall, New Jersey.

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