American Electric Power Co Inc (AEP)vsPinnacle West Capital Corp (PNW)
AEP
American Electric Power Co Inc
$130.30
+2.64%
UTILITIES · Cap: $70.36B
PNW
Pinnacle West Capital Corp
$103.06
+2.57%
UTILITIES · Cap: $12.54B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 311% more annual revenue ($22.43B vs $5.46B). AEP leads profitability with a 16.3% profit margin vs 12.0%. AEP appears more attractively valued with a PEG of 2.37. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
PNW
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AEP.
Margin of Safety
-27.7%
Fair Value
$75.17
Current Price
$103.06
$27.89 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%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
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 : PNW
The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% 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 : PNW
The primary concerns for PNW are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Key Dynamics to Monitor
AEP profiles as a mature stock while PNW is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.52 — expect wider price swings.
PNW is growing revenue faster at 11.4% — sustainability is the question.
PNW generates stronger free cash flow (-393M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 55/100), 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 →Pinnacle West Capital Corp
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.
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