American Electric Power Co Inc (AEP)vsSouthern Company (SO)
AEP
American Electric Power Co Inc
$125.66
-2.38%
UTILITIES · Cap: $67.96B
SO
Southern Company
$93.39
-2.95%
UTILITIES · Cap: $104.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 35% more annual revenue ($29.55B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-176.6%
Fair Value
$44.20
Current Price
$125.66
$81.46 premium
Margin of Safety
-250.3%
Fair Value
$26.66
Current Price
$93.39
$66.73 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 22.8%
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Expensive relative to growth rate
Earnings declined 22.1%
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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
AEP profiles as a mature stock while SO is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.57 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 54/100), backed by strong 16.4% margins and 13.2% 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 →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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