WallStSmart

American Electric Power Co Inc (AEP)vsMGE Energy Inc (MGEE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 2930% more annual revenue ($22.79B vs $752.13M). MGEE leads profitability with a 19.9% profit margin vs 13.8%. AEP appears more attractively valued with a PEG of 1.97. MGEE earns a higher WallStSmart Score of 61/100 (C+).

AEP

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 4.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

MGEE

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-86.9%)

Margin of Safety

-86.9%

Fair Value

$65.98

Current Price

$123.33

$57.35 premium

UndervaluedFair: $65.98Overvalued

Intrinsic value data unavailable for MGEE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$67.14B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

MGEE3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Debt/EquityHealth
1.663/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

MGEE4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.1%4/10

1.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.122/10

Expensive relative to growth rate

Free Cash FlowQuality
$-41.63M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : MGEE

The strongest argument for MGEE centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 19.9% and operating margin at 22.7%.

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, EPS Growth. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Bear Case : MGEE

The primary concerns for MGEE are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

MGEE carries more volatility with a beta of 0.70 — expect wider price swings.

AEP is growing revenue faster at 7.0% — sustainability is the question.

MGEE generates stronger free cash flow (-42M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGEE scores higher overall (61/100 vs 58/100), backed by strong 19.9% 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.

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.

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MGE Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.

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