American Electric Power Co Inc (AEP)vsCMS Energy Corporation (CMS)
AEP
American Electric Power Co Inc
$125.73
+0.38%
UTILITIES · Cap: $69.87B
CMS
CMS Energy Corporation
$71.03
-0.24%
UTILITIES · Cap: $22.24B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 159% more annual revenue ($22.79B vs $8.81B). AEP leads profitability with a 13.8% profit margin vs 11.6%. AEP appears more attractively valued with a PEG of 2.18. AEP earns a higher WallStSmart Score of 56/100 (C).
AEP
Buy56
out of 100
Grade: C
CMS
Hold48
out of 100
Grade: D+
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 23.3%
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
Expensive relative to growth rate
Revenue declined 0.5%
Earnings declined 43.9%
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.
Bull Case : CMS
The strongest argument for CMS centers on Price/Book.
Bear Case : AEP
The primary concerns for AEP are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.63 is elevated, increasing financial risk.
Bear Case : CMS
The primary concerns for CMS are PEG Ratio, Revenue Growth, EPS Growth. Debt-to-equity of 2.02 is elevated, increasing financial risk.
Key Dynamics to Monitor
AEP profiles as a value stock while CMS is a declining play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.51 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
CMS generates stronger free cash flow (-334M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (56/100 vs 48/100). Both earn "Buy" and "Hold" 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 →CMS Energy Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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