WallStSmart

American Electric Power Co Inc (AEP)vsNorthWestern Corporation (NWE)

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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

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

NWE

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.75
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-82.5%)

Margin of Safety

-82.5%

Fair Value

$69.32

Current Price

$126.53

$57.21 premium

UndervaluedFair: $69.32Overvalued
NWESignificantly Overvalued (-21.7%)

Margin of Safety

-21.7%

Fair Value

$56.23

Current Price

$82.73

$26.50 premium

UndervaluedFair: $56.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.90B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

NWE1 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.683/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.16B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

NWE4 concerns · Avg: 3.3/10
P/E RatioValuation
28.8x4/10

Moderate valuation

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Debt/EquityHealth
1.243/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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.

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