WallStSmart

The AES Corporation (AES)vsCompanhia Energetica de Minas Gerais CEMIG Pref ADR (CIG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Companhia Energetica de Minas Gerais CEMIG Pref ADR generates 249% more annual revenue ($42.75B vs $12.23B). CIG leads profitability with a 11.5% profit margin vs 7.4%. CIG appears more attractively valued with a PEG of 0.33. CIG earns a higher WallStSmart Score of 72/100 (B).

AES

Buy

55

out of 100

Grade: C

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

CIG

Strong Buy

72

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 10.0Quality: 5.5
Piotroski: 2/9Altman Z: 1.82
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
CIGUndervalued (+84.7%)

Margin of Safety

+84.7%

Fair Value

$14.98

Current Price

$2.40

$12.58 discount

UndervaluedFair: $14.98Overvalued

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

CIG5 strengths · Avg: 9.6/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

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

CIG3 concerns · Avg: 3.7/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Altman Z-ScoreHealth
1.824/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

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 : CIG

The strongest argument for CIG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.33 suggests the stock is reasonably priced for its growth.

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 : CIG

The primary concerns for CIG are Revenue Growth, Altman Z-Score, Piotroski F-Score.

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.

CIG generates stronger free cash flow (440M), providing more financial flexibility.

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

Bottom Line

CIG scores higher overall (72/100 vs 55/100). Both earn "Strong 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.

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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Companhia Energetica de Minas Gerais CEMIG Pref ADR

UTILITIES · UTILITIES - DIVERSIFIED · USA

Companhia Energtica de Minas Gerais, is dedicated to the generation, transmission, distribution and sale of energy in Brazil. The company is headquartered in Belo Horizonte, Brazil.

Visit Website →

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