WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 148% more annual revenue ($22.43B vs $9.04B). AEP leads profitability with a 16.3% profit margin vs 13.1%. PPL appears more attractively valued with a PEG of 1.43. PPL earns a higher WallStSmart Score of 67/100 (B-).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

PPL

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-54.0%)

Margin of Safety

-54.0%

Fair Value

$79.36

Current Price

$130.16

$50.80 premium

UndervaluedFair: $79.36Overvalued
PPLSignificantly Overvalued (-23.8%)

Margin of Safety

-23.8%

Fair Value

$29.07

Current Price

$35.91

$6.84 premium

UndervaluedFair: $29.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.82B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

PPL2 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

EPS GrowthGrowth
49.9%8/10

Earnings expanding 49.9% YoY

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.882/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

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

2.8% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-614.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.802/10

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. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : PPL

The strongest argument for PPL centers on Price/Book, EPS Growth. PEG of 1.43 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 : PPL

The primary concerns for PPL are Revenue Growth, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

AEP profiles as a mature stock while PPL is a value play — different risk/reward profiles.

PPL carries more volatility with a beta of 0.62 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

PPL generates stronger free cash flow (-614M), providing more financial flexibility.

Bottom Line

PPL scores higher overall (67/100 vs 64/100). 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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