American Electric Power Co Inc (AEP)vsTransAlta Corp (TAC)
AEP
American Electric Power Co Inc
$130.10
+0.97%
UTILITIES · Cap: $70.72B
TAC
TransAlta Corp
$12.92
-0.15%
UTILITIES · Cap: $3.84B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 810% more annual revenue ($21.88B vs $2.40B). AEP leads profitability with a 16.4% profit margin vs -5.7%. AEP appears more attractively valued with a PEG of 2.70. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
TAC
Avoid31
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$130.10
$84.81 premium
Intrinsic value data unavailable for TAC.
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%
No standout strengths identified
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Trading at 11.6x book value
Weak financial health signals
Expensive relative to growth rate
ROE of -9.6% — below average capital efficiency
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 : TAC
TAC has a balanced fundamental profile.
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 : TAC
The primary concerns for TAC are Price/Book, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
AEP profiles as a mature stock while TAC is a turnaround 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.
TAC generates stronger free cash flow (147M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 31/100), backed by strong 16.4% margins and 13.2% revenue growth. Both earn "Buy" and "Avoid" 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 →TransAlta Corp
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
TransAlta Corporation owns, operates and develops a diverse fleet of electric power generation assets in Canada, the United States and Australia. The company is headquartered in Calgary, Canada.
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