American Electric Power Co Inc (AEP)vsSempra Energy (SRE)
AEP
American Electric Power Co Inc
$123.33
-0.11%
UTILITIES · Cap: $67.14B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 68% more annual revenue ($22.79B vs $13.55B). SRE leads profitability with a 16.8% profit margin vs 13.8%. SRE appears more attractively valued with a PEG of 0.70. SRE earns a higher WallStSmart Score of 68/100 (B-).
AEP
Buy58
out of 100
Grade: C
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.9%
Fair Value
$65.98
Current Price
$123.33
$57.35 premium
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 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 23.3%
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
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.
Bull Case : SRE
The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 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 : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
AEP profiles as a value stock while SRE is a declining play — different risk/reward profiles.
SRE carries more volatility with a beta of 0.56 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
AEP generates stronger free cash flow (-969M), providing more financial flexibility.
Bottom Line
SRE scores higher overall (68/100 vs 58/100), backed by strong 16.8% 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 →Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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