American Electric Power Co Inc (AEP)vsPPG Industries Inc (PPG)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
PPG
PPG Industries Inc
$109.61
+0.62%
BASIC MATERIALS · Cap: $24.28B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 39% more annual revenue ($22.43B vs $16.12B). AEP leads profitability with a 16.3% profit margin vs 9.8%. PPG appears more attractively valued with a PEG of 1.44. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
PPG
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
+16.0%
Fair Value
$155.95
Current Price
$109.61
$46.34 discount
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%
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
4.2% earnings growth
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 : PPG
The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : PPG
The primary concerns for PPG are EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
AEP profiles as a mature stock while PPG is a value play — different risk/reward profiles.
PPG carries more volatility with a beta of 1.05 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
PPG generates stronger free cash flow (-163M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 60/100), backed by strong 16.3% margins and 10.2% revenue growth. PPG offers better value entry with a 16.0% margin of safety. 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 →PPG Industries Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.
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