American Electric Power Co Inc (AEP)vsPenske Automotive Group Inc (PAG)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 41% more annual revenue ($31.72B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.6%
Fair Value
$79.61
Current Price
$130.16
$50.55 premium
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 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 23.7%
Attractively priced relative to earnings
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
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
AEP profiles as a mature stock while PAG is a value play — different risk/reward profiles.
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
PAG generates stronger free cash flow (152M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 51/100), 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.
Visit Website →Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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