American Electric Power Co Inc (AEP)vsXcel Energy Inc (XEL)
AEP
American Electric Power Co Inc
$125.66
-2.38%
UTILITIES · Cap: $67.96B
XEL
Xcel Energy Inc
$76.77
-3.47%
UTILITIES · Cap: $47.90B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 49% more annual revenue ($21.88B vs $14.67B). AEP leads profitability with a 16.4% profit margin vs 13.8%. XEL appears more attractively valued with a PEG of 2.17. XEL earns a higher WallStSmart Score of 62/100 (C+).
AEP
Buy60
out of 100
Grade: C+
XEL
Buy62
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
+43.1%
Fair Value
$137.07
Current Price
$76.77
$60.30 discount
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
Earnings expanding 20.8% YoY
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
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
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 : XEL
The strongest argument for XEL centers on Price/Book, EPS Growth. Revenue growth of 14.1% 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 : XEL
The primary concerns for XEL are PEG Ratio, Debt/Equity, Piotroski F-Score.
Key Dynamics to Monitor
AEP profiles as a mature stock while XEL is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.57 — expect wider price swings.
XEL is growing revenue faster at 14.1% — sustainability is the question.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Bottom Line
XEL scores higher overall (62/100 vs 60/100) and 14.1% 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 →Xcel Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Xcel Energy Inc. is a utility holding company based in Minneapolis, Minnesota, serving more than 3.7 million electric customers and 2.1 million natural gas customers in Minnesota, Michigan, Wisconsin, North Dakota, South Dakota, Colorado, Texas, and New Mexico as of 2019. It consists of four operating subsidiaries: Northern States Power-Minnesota, Northern States Power-Wisconsin, Public Service Company of Colorado, and Southwestern Public Service Co.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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