WallStSmart

Ameren Corp (AEE)vsAmerican Electric Power Co Inc (AEP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 158% more annual revenue ($21.88B vs $8.47B). AEE leads profitability with a 17.2% profit margin vs 16.4%. AEE appears more attractively valued with a PEG of 2.71. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEE

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.0Value: 7.3Quality: 5.0

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEEUndervalued (+47.9%)

Margin of Safety

+47.9%

Fair Value

$203.30

Current Price

$106.06

$97.24 discount

UndervaluedFair: $203.30Overvalued
AEPSignificantly Overvalued (-176.6%)

Margin of Safety

-176.6%

Fair Value

$44.20

Current Price

$125.66

$81.46 premium

UndervaluedFair: $44.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEE2 strengths · Avg: 8.0/10
Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.96B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

Areas to Watch

AEE3 concerns · Avg: 2.0/10
PEG RatioValuation
2.712/10

Expensive relative to growth rate

Revenue GrowthGrowth
-8.8%2/10

Revenue declined 8.8%

Free Cash FlowQuality
$-80.00M2/10

Negative free cash flow — burning cash

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEE

The strongest argument for AEE centers on Price/Book, Operating Margin. Profitability is solid with margins at 17.2% and operating margin at 24.6%.

Bull 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.

Bear Case : AEE

The primary concerns for AEE are PEG Ratio, Revenue Growth, Free Cash Flow.

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.

Key Dynamics to Monitor

AEE profiles as a declining stock while AEP is a mature play — different risk/reward profiles.

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.

AEE generates stronger free cash flow (-80M), providing more financial flexibility.

Bottom Line

AEE scores higher overall (60/100 vs 60/100), backed by strong 17.2% margins. 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.

Ameren Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Ameren Corporation is an American power company created December 31, 1997, by the merger of St. Louis, Missouri's Union Electric Company (formerly NYSE: UEP) and the neighboring Central Illinois Public Service Company (CIPSCO Inc. holding, formerly NYSE: CIP) of Springfield, Illinois. It is now a holding company for several power companies and energy companies.

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 →

Want to dig deeper into these stocks?