WallStSmart

American Electric Power Co Inc (AEP)vsTXNM Energy, Inc. (TXNM)

VS
⚡

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 957% more annual revenue ($23.61B vs $2.23B). AEP leads profitability with a 14.2% profit margin vs 8.8%. TXNM appears more attractively valued with a PEG of 2.55. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

TXNM

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 3.7Quality: 5.0
Piotroski: 3/9Altman Z: 3.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-82.5%)

Margin of Safety

-82.5%

Fair Value

$69.32

Current Price

$126.53

$57.21 premium

UndervaluedFair: $69.32Overvalued

Intrinsic value data unavailable for TXNM.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.90B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

TXNM4 strengths · Avg: 9.0/10
EPS GrowthGrowth
190.9%10/10

Earnings expanding 190.9% YoY

Altman Z-ScoreHealth
3.2910/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.5%8/10

Strong operational efficiency at 22.5%

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.683/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.16B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

TXNM4 concerns · Avg: 3.3/10
P/E RatioValuation
33.7x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Debt/EquityHealth
1.663/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 13.7% demonstrates continued momentum.

Bull Case : TXNM

The strongest argument for TXNM centers on EPS Growth, Altman Z-Score, Price/Book.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.68 is elevated, increasing financial risk.

Bear Case : TXNM

The primary concerns for TXNM are P/E Ratio, Return on Equity, Debt/Equity. Debt-to-equity of 1.66 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.47 — expect wider price swings.

AEP is growing revenue faster at 13.7% — sustainability is the question.

TXNM generates stronger free cash flow (-96M), providing more financial flexibility.

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

Bottom Line

AEP scores higher overall (64/100 vs 63/100) and 13.7% 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 →

TXNM Energy, Inc.

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

TXNM Energy, Inc., provides electricity and electric services in the United States. The company is headquartered in Albuquerque, New Mexico.

Want to dig deeper into these stocks?