WallStSmart

American Electric Power Co Inc (AEP)vsOrmat Technologies Inc (ORA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 1828% more annual revenue ($22.43B vs $1.16B). AEP leads profitability with a 16.3% profit margin vs 11.0%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

ORA

Buy

54

out of 100

Grade: C-

Growth: 8.0Profit: 5.5Value: 3.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.92

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

ORA2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
75.8%10/10

Revenue surging 75.8% year-over-year

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

ORA4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Debt/EquityHealth
1.333/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
7.202/10

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 : ORA

The strongest argument for ORA centers on Revenue Growth, Operating Margin. Revenue growth of 75.8% demonstrates continued momentum.

Bear Case : AEP

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

Bear Case : ORA

The primary concerns for ORA are Return on Equity, Debt/Equity, Piotroski F-Score. A P/E of 66.7x leaves little room for execution misses.

Key Dynamics to Monitor

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

ORA carries more volatility with a beta of 0.85 — expect wider price swings.

ORA is growing revenue faster at 75.8% — sustainability is the question.

ORA generates stronger free cash flow (-35M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 54/100), 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.

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Ormat Technologies Inc

UTILITIES · UTILITIES - RENEWABLE · USA

Ormat Technologies, Inc. is engaged in the geothermal and recovered energy business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras and internationally. The company is headquartered in Reno, Nevada.

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