WallStSmart

American Electric Power Co Inc (AEP)vsPinnacle West Capital Corp (PNW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 310% more annual revenue ($22.79B vs $5.55B). AEP leads profitability with a 13.8% profit margin vs 11.5%. AEP appears more attractively valued with a PEG of 1.97. AEP earns a higher WallStSmart Score of 58/100 (C).

AEP

Buy

58

out of 100

Grade: C

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

PNW

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 4.0Quality: 2.5
Piotroski: 1/9Altman Z: 0.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-82.4%)

Margin of Safety

-82.4%

Fair Value

$66.18

Current Price

$120.27

$54.09 premium

UndervaluedFair: $66.18Overvalued
PNWSignificantly Overvalued (-24.9%)

Margin of Safety

-24.9%

Fair Value

$76.91

Current Price

$93.16

$16.25 premium

UndervaluedFair: $76.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.14B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

PNW3 strengths · Avg: 8.0/10
P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.974/10

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

PNW4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.623/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.622/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.5%2/10

Earnings declined 9.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

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

Bull Case : PNW

The strongest argument for PNW centers on P/E Ratio, Price/Book, Operating Margin.

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 : PNW

The primary concerns for PNW are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.50 — expect wider price swings.

PNW is growing revenue faster at 7.1% — sustainability is the question.

PNW generates stronger free cash flow (-335M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (58/100 vs 55/100). 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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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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