WallStSmart

American Electric Power Co Inc (AEP)vsPublic Service Enterprise Group Inc (PEG)

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Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 82% more annual revenue ($22.79B vs $12.54B). PEG leads profitability with a 16.0% profit margin vs 13.8%. AEP appears more attractively valued with a PEG of 2.00. AEP earns a higher WallStSmart Score of 56/100 (C).

AEP

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

PEG

Buy

50

out of 100

Grade: C-

Growth: 3.3Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.96
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

PEGSignificantly Overvalued (-69.7%)

Margin of Safety

-69.7%

Fair Value

$49.60

Current Price

$73.63

$24.03 premium

UndervaluedFair: $49.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.90B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

PEG1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.004/10

Expensive relative to growth rate

Debt/EquityHealth
1.663/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

PEG4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.423/10

Elevated debt levels

PEG RatioValuation
3.442/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

EPS GrowthGrowth
-42.7%2/10

Earnings declined 42.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : PEG

The strongest argument for PEG centers on Price/Book. Profitability is solid with margins at 16.0% and operating margin at 18.9%.

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : PEG

The primary concerns for PEG are Debt/Equity, PEG Ratio, Revenue Growth.

Key Dynamics to Monitor

AEP profiles as a value stock while PEG is a declining play — different risk/reward profiles.

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

AEP is growing revenue faster at 7.0% — sustainability is the question.

PEG generates stronger free cash flow (498M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (56/100 vs 50/100). 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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Public Service Enterprise Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

The Public Service Enterprise Group (PSEG) is a publicly traded diversified energy company headquartered in Newark, New Jersey.

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