American Electric Power Co Inc (AEP)vsSouthwest Gas Holdings Inc (SWX)
AEP
American Electric Power Co Inc
$127.79
+0.06%
UTILITIES · Cap: $69.16B
SWX
Southwest Gas Holdings Inc
$88.72
+1.78%
UTILITIES · Cap: $6.44B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 1161% more annual revenue ($22.43B vs $1.78B). SWX leads profitability with a 26.1% profit margin vs 16.3%. SWX appears more attractively valued with a PEG of 2.18. SWX earns a higher WallStSmart Score of 65/100 (B-).
AEP
Buy64
out of 100
Grade: C+
SWX
Strong Buy65
out of 100
Grade: B-
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%
Strong operational efficiency at 37.9%
Keeps 26 of every $100 in revenue as profit
Reasonable price relative to book value
Earnings expanding 20.9% YoY
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Moderate valuation
Revenue declined 21.6%
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 26.1% and operating margin at 37.9%.
Bear Case : AEP
The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
AEP profiles as a mature stock while SWX is a declining play — different risk/reward profiles.
SWX carries more volatility with a beta of 0.58 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
SWX generates stronger free cash flow (-47M), providing more financial flexibility.
Bottom Line
SWX scores higher overall (65/100 vs 64/100), backed by strong 26.1% 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 →Southwest Gas Holdings Inc
UTILITIES · UTILITIES - REGULATED GAS · USA
Southwest Gas Holdings, Inc. purchases, distributes and transports natural gas in Arizona, Nevada and California. The company is headquartered in Las Vegas, Nevada.
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