American Electric Power Co Inc (AEP)vsSouthwest Gas Holdings Inc (SWX)
AEP
American Electric Power Co Inc
$137.11
+1.99%
UTILITIES · Cap: $74.53B
SWX
Southwest Gas Holdings Inc
$91.90
+0.21%
UTILITIES · Cap: $6.65B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 1027% more annual revenue ($21.88B vs $1.94B). SWX leads profitability with a 22.7% profit margin vs 16.4%. SWX appears more attractively valued with a PEG of 2.24. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
SWX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.0%
Fair Value
$76.88
Current Price
$137.11
$60.23 premium
Margin of Safety
-18.3%
Fair Value
$72.67
Current Price
$91.90
$19.23 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%
Strong operational efficiency at 33.9%
Keeps 23 of every $100 in revenue as profit
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
Moderate valuation
ROE of 6.1% — below average capital efficiency
Revenue declined 13.1%
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 : SWX
The strongest argument for SWX centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 22.7% and operating margin at 33.9%.
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 : SWX
The primary concerns for SWX are PEG Ratio, P/E Ratio, Return on Equity.
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 0.59 — 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 57/100), 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 →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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