American Electric Power Co Inc (AEP)vsCMS Energy Corporation (CMS)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
CMS
CMS Energy Corporation
$75.44
+0.13%
UTILITIES · Cap: $23.09B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 156% more annual revenue ($21.88B vs $8.54B). AEP leads profitability with a 16.4% profit margin vs 12.5%. AEP appears more attractively valued with a PEG of 2.77. CMS earns a higher WallStSmart Score of 62/100 (C+).
AEP
Buy60
out of 100
Grade: C+
CMS
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-21.6%
Fair Value
$61.28
Current Price
$75.44
$14.16 premium
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
Strong operational efficiency at 21.7%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : CMS
The strongest argument for CMS centers on Price/Book, Operating Margin. Revenue growth of 12.3% 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 : CMS
The primary concerns for CMS are Piotroski F-Score, PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
AEP profiles as a mature stock while CMS is a value 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.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Bottom Line
CMS scores higher overall (62/100 vs 60/100) and 12.3% 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 →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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