American Electric Power Co Inc (AEP)vsSouthern Company (SO)
AEP
American Electric Power Co Inc
$129.86
-0.36%
UTILITIES · Cap: $70.90B
SO
Southern Company
$93.75
-0.91%
UTILITIES · Cap: $107.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 28% more annual revenue ($30.18B vs $23.61B). SO leads profitability with a 15.4% profit margin vs 14.2%. SO appears more attractively valued with a PEG of 2.22. SO earns a higher WallStSmart Score of 66/100 (B-).
AEP
Buy64
out of 100
Grade: C+
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.4%
Fair Value
$69.11
Current Price
$129.86
$60.75 premium
Margin of Safety
-50.5%
Fair Value
$62.28
Current Price
$93.75
$31.47 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 26.9%
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
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
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.66 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
AEP carries more volatility with a beta of 0.47 — expect wider price swings.
AEP is growing revenue faster at 13.7% — sustainability is the question.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (66/100 vs 64/100), backed by strong 15.4% margins. 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.
Visit Website →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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