WallStSmart

American Electric Power Co Inc (AEP)vsWEC Energy Group Inc (WEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 122% more annual revenue ($22.43B vs $10.08B). AEP leads profitability with a 16.3% profit margin vs 16.2%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

WEC

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

WECSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$71.13

Current Price

$112.95

$41.82 premium

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

WEC2 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

WEC4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.583/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.732/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : WEC

The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 16.2% and operating margin at 28.9%.

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 : WEC

The primary concerns for WEC are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.58 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.55 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

WEC generates stronger free cash flow (401M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AEP scores higher overall (64/100 vs 62/100), backed by strong 16.3% margins and 10.2% 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.

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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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