American Electric Power Co Inc (AEP)vsRaytheon Technologies Corp (RTX)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
RTX
Raytheon Technologies Corp
$176.09
-0.39%
INDUSTRIALS · Cap: $238.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 303% more annual revenue ($90.37B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 8.0%. RTX appears more attractively valued with a PEG of 2.43. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
RTX
Buy59
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
-51.9%
Fair Value
$116.35
Current Price
$176.09
$59.74 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%
Mega-cap, among the largest globally
Earnings expanding 32.5% YoY
Generating 1.2B in free cash flow
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
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 : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while RTX is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
RTX generates stronger free cash flow (1.2B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 59/100), 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 →Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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