American Electric Power Co Inc (AEP)vsNorthWestern Corporation (NWE)
AEP
American Electric Power Co Inc
$126.53
-0.19%
UTILITIES · Cap: $70.90B
NWE
NorthWestern Corporation
$82.73
+0.87%
UTILITIES · Cap: $4.84B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 1296% more annual revenue ($23.61B vs $1.69B). AEP leads profitability with a 14.2% profit margin vs 10.1%. AEP appears more attractively valued with a PEG of 2.82. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
NWE
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-82.5%
Fair Value
$69.32
Current Price
$126.53
$57.21 premium
Margin of Safety
-21.7%
Fair Value
$56.23
Current Price
$82.73
$26.50 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 26.9%
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Moderate valuation
ROE of 5.8% — below average capital efficiency
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. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : NWE
The strongest argument for NWE centers on Price/Book. Revenue growth of 14.6% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Bear Case : NWE
The primary concerns for NWE are P/E Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.47 — expect wider price swings.
NWE is growing revenue faster at 14.6% — sustainability is the question.
NWE generates stronger free cash flow (-115M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (64/100 vs 59/100) and 13.7% 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 →NorthWestern Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial and industrial customers. The company is headquartered in Sioux Falls, South Dakota.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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