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AEP vs NGG

AEP
American Electric Power Company, Inc.
NEUTRAL
Price
$131.85
Market Cap
$71.67B
Sector
Utilities
AI Confidence
90%
NGG
National Grid plc
BEARISH
Price
$89.54
Market Cap
$89.06B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AEP
19.8
NGG
22.16
Forward P/E
AEP
19.22
NGG
14.7
P/B Ratio
AEP
2.29
NGG
8.96
P/S Ratio
AEP
3.28
NGG
5.09
EV/EBITDA
AEP
13.54
NGG
67.62

Profitability

Gross Margin
AEP
47.52%
NGG
100.0%
Operating Margin
AEP
22.84%
NGG
24.15%
Profit Margin
AEP
16.36%
NGG
16.43%
ROE
AEP
12.49%
NGG
7.87%
ROA
AEP
3.17%
NGG
3.22%

Growth

Revenue Growth
AEP
13.2%
NGG
-11.3%
Earnings Growth
AEP
-12.6%
NGG
-12.4%

Financial Health

Debt/Equity
AEP
1.54
NGG
1.23
Current Ratio
AEP
0.46
NGG
0.97
Quick Ratio
AEP
0.25
NGG
0.75

Dividends

Dividend Yield
AEP
2.9%
NGG
3.48%
Payout Ratio
AEP
56.16%
NGG
77.96%

AI Verdict

AEP NEUTRAL

AEP shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Company has established market presence
Risks
Limited historical data available for full assessment
NGG BEARISH

National Grid (NGG) presents a stark divergence between its stable operational health and its current market valuation. While the Piotroski F-Score of 5/9 indicates a stable financial condition, the stock is trading at a massive premium, with a current price of $89.54 far exceeding the Graham Number ($30.15) and Intrinsic Value ($28.28). This valuation gap is compounded by negative YoY revenue (-11.30%) and earnings growth (-12.40%), suggesting the market is pricing in growth that is not supported by current data. Despite strong operating margins, the bearish technical trend and high payout ratio signal significant downside risk.

Strengths
Strong operating margin of 24.15%, significantly outperforming the sector average
Debt/Equity ratio (1.23) is lower than the utility sector average (1.58)
Stable financial health as indicated by a Piotroski F-Score of 5/9
Risks
Severe overvaluation relative to Graham Number ($30.15) and Intrinsic Value ($28.28)
Negative YoY revenue growth (-11.30%) and earnings growth (-12.40%)
Extremely high Price-to-Book ratio of 8.96, indicating a high premium over assets

Compare Another Pair

AEP vs NGG: Head-to-Head Comparison

This page compares American Electric Power Company, Inc. (AEP) and National Grid plc (NGG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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