WallStSmart

American Electric Power Co Inc (AEP)vsPetroleo Brasileiro Petrobras SA ADR (PBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Petroleo Brasileiro Petrobras SA ADR generates 2147% more annual revenue ($491.45B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 15.8%. PBR appears more attractively valued with a PEG of 0.33. PBR earns a higher WallStSmart Score of 69/100 (B-).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

PBR

Strong Buy

69

out of 100

Grade: B-

Growth: 2.7Profit: 8.0Value: 8.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.35
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
PBRUndervalued (+3.6%)

Margin of Safety

+3.6%

Fair Value

$16.42

Current Price

$19.82

$3.40 discount

UndervaluedFair: $16.42Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

PBR6 strengths · Avg: 9.5/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
6.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Operating MarginProfitability
36.2%10/10

Strong operational efficiency at 36.2%

Market CapQuality
$84.28B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.84B8/10

Generating 2.8B in free cash flow

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

PBR3 concerns · Avg: 2.7/10
EPS GrowthGrowth
0.5%4/10

0.5% earnings growth

Revenue GrowthGrowth
-1.3%2/10

Revenue declined 1.3%

Altman Z-ScoreHealth
1.352/10

Distress zone — elevated risk

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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : PBR

The strongest argument for PBR centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 15.8% and operating margin at 36.2%. PEG of 0.33 suggests the stock is reasonably priced for its growth.

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 : PBR

The primary concerns for PBR are EPS Growth, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

AEP profiles as a mature stock while PBR is a declining 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.

PBR generates stronger free cash flow (2.8B), providing more financial flexibility.

Bottom Line

PBR scores higher overall (69/100 vs 60/100), backed by strong 15.8% margins. Both earn "Strong 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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Petroleo Brasileiro Petrobras SA ADR

ENERGY · OIL & GAS INTEGRATED · USA

Petrleo Brasileiro SA - Petrobras produces and sells oil and gas in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.

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