WallStSmart

American Electric Power Co Inc (AEP)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 93% more annual revenue ($43.37B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 11.2%. CIG appears more attractively valued with a PEG of 0.33. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

CIG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 6.0Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 1.68

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

CIG4 strengths · Avg: 9.5/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

P/E RatioValuation
6.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.05B8/10

Generating 1.0B in free cash flow

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

CIG3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.684/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-5.8%2/10

Earnings declined 5.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

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 : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : CIG

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

Key Dynamics to Monitor

AEP profiles as a mature stock while CIG is a value play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.55 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

CIG generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 60/100), backed by strong 16.3% margins and 10.2% 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.

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Companhia Energetica de Minas Gerais CEMIG Pref ADR

UTILITIES · UTILITIES - REGULATED ELECTRIC · 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.

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