WallStSmart

American Electric Power Co Inc (AEP)vsPPL Corporation (PPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 143% more annual revenue ($22.79B vs $9.40B). AEP leads profitability with a 13.8% profit margin vs 13.5%. PPL appears more attractively valued with a PEG of 1.22. PPL earns a higher WallStSmart Score of 67/100 (B-).

AEP

Buy

58

out of 100

Grade: C

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

PPL

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 6.5Value: 4.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.74
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
PPLSignificantly Overvalued (-41.9%)

Margin of Safety

-41.9%

Fair Value

$25.37

Current Price

$32.88

$7.51 premium

UndervaluedFair: $25.37Overvalued

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%

PPL3 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.6%8/10

Strong operational efficiency at 23.6%

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

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

PPL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Debt/EquityHealth
1.323/10

Elevated debt levels

Free Cash FlowQuality
$-475.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.742/10

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.

Bull Case : PPL

The strongest argument for PPL centers on Price/Book, Operating Margin, EPS Growth. PEG of 1.22 suggests the stock is reasonably priced for its growth.

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 : PPL

The primary concerns for PPL are Revenue Growth, Debt/Equity, Free Cash Flow.

Key Dynamics to Monitor

PPL carries more volatility with a beta of 0.58 — expect wider price swings.

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

PPL generates stronger free cash flow (-475M), providing more financial flexibility.

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

Bottom Line

PPL scores higher overall (67/100 vs 58/100). 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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PPL Corporation

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

PPL Corporation is an energy company headquartered in Allentown, Pennsylvania, United States.

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