American Electric Power Co Inc (AEP)vsStem Inc (STEM)
AEP
American Electric Power Co Inc
$120.61
-1.33%
UTILITIES · Cap: $67.14B
STEM
Stem Inc
$4.63
-2.53%
UTILITIES · Cap: $53.04M
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 15296% more annual revenue ($22.79B vs $148.03M). AEP leads profitability with a 13.8% profit margin vs -49.4%. AEP earns a higher WallStSmart Score of 58/100 (C).
AEP
Buy58
out of 100
Grade: C
STEM
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-86.9%
Fair Value
$65.98
Current Price
$120.61
$54.63 premium
Margin of Safety
+59.6%
Fair Value
$28.49
Current Price
$4.63
$23.86 discount
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%
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Earnings declined 43.2%
Negative free cash flow — burning cash
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -5921.0% — below average capital efficiency
Revenue declined 12.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.
Bull Case : STEM
The strongest argument for STEM centers on Debt/Equity.
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 : STEM
The primary concerns for STEM are EPS Growth, Market Cap, Return on Equity.
Key Dynamics to Monitor
AEP profiles as a value stock while STEM is a turnaround play — different risk/reward profiles.
STEM carries more volatility with a beta of 1.51 — expect wider price swings.
AEP is growing revenue faster at 7.0% — sustainability is the question.
STEM generates stronger free cash flow (-2M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (58/100 vs 32/100). STEM offers better value entry with a 59.6% margin of safety. Both earn "Buy" and "Avoid" 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 →Stem Inc
UTILITIES · UTILITIES - RENEWABLE · USA
Stem, Inc. is an energy technology company in the United States. The company is headquartered in Millbrae, California.
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