WallStSmart

The AES Corporation (AES)vsAlgonquin Power & Utilities Corp (AQN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

The AES Corporation generates 403% more annual revenue ($12.23B vs $2.43B). AES leads profitability with a 7.4% profit margin vs 7.4%. AES trades at a lower P/E of 10.8x. AES earns a higher WallStSmart Score of 55/100 (C).

AES

Buy

55

out of 100

Grade: C

Growth: 2.7Profit: 5.0Value: 7.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.44

AQN

Hold

43

out of 100

Grade: D

Growth: 2.7Profit: 5.0Value: 5.7Quality: 5.5
Piotroski: 5/9Altman Z: 0.32
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AESSignificantly Overvalued (-84.5%)

Margin of Safety

-84.5%

Fair Value

$8.91

Current Price

$14.06

$5.15 premium

UndervaluedFair: $8.91Overvalued
AQNSignificantly Overvalued (-259.2%)

Margin of Safety

-259.2%

Fair Value

$1.84

Current Price

$6.27

$4.43 premium

UndervaluedFair: $1.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AES2 strengths · Avg: 9.0/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

AQN1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Areas to Watch

AES4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Return on EquityProfitability
1.9%3/10

ROE of 1.9% — below average capital efficiency

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

AQN4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.7%4/10

1.7% revenue growth

Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
7.4%3/10

7.4% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AES

The strongest argument for AES centers on P/E Ratio, Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : AQN

The strongest argument for AQN centers on Price/Book.

Bear Case : AES

The primary concerns for AES are Revenue Growth, Return on Equity, Profit Margin. Debt-to-equity of 7.98 is elevated, increasing financial risk.

Bear Case : AQN

The primary concerns for AQN are Revenue Growth, Return on Equity, Profit Margin.

Key Dynamics to Monitor

AES carries more volatility with a beta of 0.94 — expect wider price swings.

AES is growing revenue faster at 4.7% — sustainability is the question.

AQN generates stronger free cash flow (-45M), providing more financial flexibility.

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

Bottom Line

AES scores higher overall (55/100 vs 43/100). 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.

The AES Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.

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Algonquin Power & Utilities Corp

UTILITIES · UTILITIES - DIVERSIFIED · USA

Algonquin Power & Utilities Corp. The company is headquartered in Oakville, Canada.

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