American Electric Power Co Inc (AEP)vsWEC Energy Group Inc (WEC)
AEP
American Electric Power Co Inc
$128.80
+0.69%
UTILITIES · Cap: $67.96B
WEC
WEC Energy Group Inc
$113.08
+0.92%
UTILITIES · Cap: $36.52B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 123% more annual revenue ($21.88B vs $9.80B). AEP leads profitability with a 16.4% profit margin vs 15.9%. WEC appears more attractively valued with a PEG of 2.49. WEC earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
WEC
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-176.6%
Fair Value
$44.20
Current Price
$128.80
$84.60 premium
Margin of Safety
-245.9%
Fair Value
$32.71
Current Price
$113.08
$80.37 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%
Reasonable price relative to book value
Strong operational efficiency at 21.3%
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
Earnings declined 32.5%
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : WEC
The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.9% and operating margin at 21.3%. Revenue growth of 11.1% demonstrates continued momentum.
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 : WEC
The primary concerns for WEC are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
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.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (60/100 vs 60/100), 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 →WEC Energy Group Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
WEC Energy Group, based in Milwaukee, Wisconsin, provides electricity and natural gas to 4.4 million customers across four states.
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