American Electric Power Co Inc (AEP)vsOtter Tail Corporation (OTTR)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
OTTR
Otter Tail Corporation
$86.55
-0.62%
INDUSTRIALS · Cap: $3.65B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 1578% more annual revenue ($21.88B vs $1.30B). OTTR leads profitability with a 21.2% profit margin vs 16.4%. OTTR appears more attractively valued with a PEG of 1.72. OTTR earns a higher WallStSmart Score of 63/100 (C+).
AEP
Buy60
out of 100
Grade: C+
OTTR
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-92.9%
Fair Value
$44.54
Current Price
$86.55
$42.01 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 22.8%
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 22.2%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Expensive relative to growth rate
1.6% revenue growth
Distress zone — elevated risk
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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : OTTR
The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 22.2%.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : OTTR
The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while OTTR is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.57 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
OTTR generates stronger free cash flow (22M), providing more financial flexibility.
Bottom Line
OTTR scores higher overall (63/100 vs 60/100), backed by strong 21.2% margins. 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 →Otter Tail Corporation
INDUSTRIALS · CONGLOMERATES · USA
Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.
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