WallStSmart

American Electric Power Co Inc (AEP)vsNorthwest Natural Gas Co (NWN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 1645% more annual revenue ($22.43B vs $1.29B). AEP leads profitability with a 16.3% profit margin vs 9.6%. AEP appears more attractively valued with a PEG of 2.51. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

NWN

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

NWNUndervalued (+17.3%)

Margin of Safety

+17.3%

Fair Value

$59.03

Current Price

$49.73

$9.30 discount

UndervaluedFair: $59.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$75.46B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

NWN3 strengths · Avg: 9.3/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.633/10

Elevated debt levels

PEG RatioValuation
2.512/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

NWN4 concerns · Avg: 2.8/10
Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Debt/EquityHealth
1.703/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.542/10

Expensive relative to growth rate

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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : NWN

The strongest argument for NWN centers on Price/Book, Operating Margin, P/E Ratio.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : NWN

The primary concerns for NWN are Return on Equity, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP profiles as a mature stock while NWN is a value play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.52 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

NWN generates stronger free cash flow (2M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 58/100), backed by strong 16.3% margins and 10.2% revenue growth. NWN offers better value entry with a 17.3% margin of safety. 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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Northwest Natural Gas Co

UTILITIES · UTILITIES - REGULATED GAS · USA

Northwest Natural Holding Company, through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial and transportation customers in Oregon and Southwest Washington. The company is headquartered in Portland, Oregon.

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