American Electric Power Co Inc (AEP)vsNorthrop Grumman Corporation (NOC)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
NOC
Northrop Grumman Corporation
$549.52
-0.50%
INDUSTRIALS · Cap: $78.44B
Smart Verdict
WallStSmart Research — data-driven comparison
Northrop Grumman Corporation generates 89% more annual revenue ($42.37B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 10.8%. AEP appears more attractively valued with a PEG of 2.88. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
NOC
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
-60.9%
Fair Value
$421.87
Current Price
$549.52
$127.65 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%
Earnings expanding 84.9% YoY
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Attractively priced relative to earnings
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
4.4% revenue growth
Grey zone — moderate risk
Elevated debt levels
Weak financial health signals
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 : NOC
The strongest argument for NOC centers on EPS Growth, Market Cap, Return on Equity.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : NOC
The primary concerns for NOC are Revenue Growth, Altman Z-Score, Debt/Equity.
Key Dynamics to Monitor
AEP profiles as a mature stock while NOC is a value play — different risk/reward profiles.
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.
AEP generates stronger free cash flow (-1.3B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 63/100), 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 →Northrop Grumman Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Northrop Grumman Corporation (NYSE: NOC) is an American multinational aerospace and defense technology company.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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