American Electric Power Co Inc (AEP)vsWestern Digital Corporation (WDC)
AEP
American Electric Power Co Inc
$125.66
-2.38%
UTILITIES · Cap: $67.96B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 104% more annual revenue ($21.88B vs $10.73B). WDC leads profitability with a 35.6% profit margin vs 16.4%. WDC appears more attractively valued with a PEG of 0.69. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
WDC
Buy55
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
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 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%
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
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 : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
AEP profiles as a mature stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
WDC generates stronger free cash flow (653M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 55/100), 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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