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Compare Stocks › AEP vs BRK-B

American Electric Power Company, Inc. (AEP) vs Berkshire Hathaway Inc. (BRK-B)

AEP
American Electric Power Company, Inc.
$136.91
VS
BRK-B
Berkshire Hathaway Inc.
$473.01

Rewards

AEP
  • ★Each dollar of retained earnings has created $4.57 of earning power — management is an exceptional capital allocator.
BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★PEG ratio of 0.13 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

AEP
  • ⚠PEG ratio of 2.87 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 5.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.91 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
BRK-B
  • ⚠FCF yield of 6.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 15.2x is 72% above the historical average of 8.9x — the stock trades at a premium to its own history.

Key Valuation Metrics

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AEP
BRK-B
Valuation
$-5.14B
Free Cash Flow
$61.23B
-6.91%
FCF Yield
6.00%
20.59
Trailing P/E
15.24
19.91
Forward P/E
21.95
Quality & Moat
4.82%
ROIC
4.96%
11.11%
ROE
9.18%
47.52%
Gross Margin
27.78%
2.87
PEG Ratio
0.13
Balance Sheet Safety
1.54
Debt / Equity
0.18
N/A
Interest Coverage
N/A
5.50
Net Debt / EBITDA
-2.28
2.78%
Dividend Yield
N/A
AEP: 3Ties: 2BRK-B: 6
AEPBRK-B

Historical Fundamentals

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AEP

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

BRK-B

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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AEP
$4.38
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$3.10B
Δ Market Cap
+$13.58B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
BRK-B
$1.66
created per $1 retained over 3 years
Value Creator
Σ Retained
$252.19B
Δ Market Cap
+$417.89B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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AEP
156.8% Overvalued
Price is 156.8% above estimated fair value
Current Price: $136.91
Fair Value: $53.32
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
31.0% Margin of Safety
Price is 31.0% below estimated fair value
Current Price: $473.01
Fair Value: $685.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AEP

Requires positive FCF to compute implied growth rate.

BRK-B

What growth rate is the market pricing in at $473?

-0.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.0%

The market implies -0.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.0%, reflecting heavy growth investment.

Economic Moat Score

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AEP
43/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
BRK-B
40/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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AEP
-2.54
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
BRK-B
-2.41
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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AEP
Insiders 0.0%Institutions 84.5%Retail & Other 15.4%
No. of Institutional Holders2,324
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
BRK-B
Insiders 0.3%Institutions 66.2%Retail & Other 33.6%
No. of Institutional Holders5,818
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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AEP
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
BRK-B
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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AEP
1
Sells (3M)
12
Sells (12M)
Total value (12M): $7.06M
FERNEAU KELLY J.
Officer
$177,602
@ $131.46 · 2026-02-24
FOWKE BENJAMIN G S III
Director
$575,350
@ $115.07 · 2025-12-12
FOWKE BENJAMIN G S III
Director
$607,900
@ $121.58 · 2025-11-14
FOWKE BENJAMIN G S III
Director
$587,600
@ $117.52 · 2025-10-10
FERNEAU KELLY J.
Officer
$112,672
@ $112.00 · 2025-10-02
FOWKE BENJAMIN G S III
Director
$543,250
@ $108.65 · 2025-09-12
FOWKE BENJAMIN G S III
Director
$559,950
@ $111.99 · 2025-08-15
FERNEAU KELLY J.
Officer
$383,902
@ $111.99 · 2025-08-15
FEINBERG DAVID MATTHEW
Officer
$819,821
@ $101.74 · 2025-06-17
FEINBERG DAVID MATTHEW
Officer
$817,806
@ $101.49 · 2025-06-10
FEINBERG DAVID MATTHEW
Officer
$829,388
@ $102.94 · 2025-06-03
LIES QUINTON S
Officer
$1.04M
@ $102.68 · 2025-05-19
RISCH THERACE M
Officer
$516,747
@ $97.98 · 2024-07-30
SMYTH ANTONIO P
Officer
$440,820
@ $90.00 · 2024-06-05
HALL GREG B
Officer
$518,910
@ $88.25 · 2024-05-31
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BRK-B
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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AEP
FearGreed
😏Greed(69/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
BRK-B
FearGreed
😐Neutral(52/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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AEP
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (69)
BRK-B
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (52)
View AEP Full AnalysisView BRK-B Full Analysis