American Electric Power Co Inc (AEP)vsCMS Energy Corporation (CMS)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
CMS
CMS Energy Corporation
$72.61
-1.83%
UTILITIES · Cap: $22.85B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 154% more annual revenue ($22.43B vs $8.82B). AEP leads profitability with a 16.3% profit margin vs 12.6%. AEP appears more attractively valued with a PEG of 2.88. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
CMS
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
-53.5%
Fair Value
$48.56
Current Price
$72.61
$24.05 premium
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 23.7%
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull 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 : CMS
The strongest argument for CMS centers on Price/Book. Revenue growth of 11.6% demonstrates continued momentum.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : CMS
The primary concerns for CMS are Piotroski F-Score, PEG Ratio, Free Cash Flow.
Key Dynamics to Monitor
AEP profiles as a mature stock while CMS is a value play — different risk/reward profiles.
AEP carries more volatility with a beta of 0.55 — expect wider price swings.
CMS is growing revenue faster at 11.6% — sustainability is the question.
CMS generates stronger free cash flow (-334M), 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.
Visit Website →CMS Energy Corporation
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
CMS Energy (NYSE: CMS), based in Jackson, Michigan, is an energy company that is focused principally on utility operations in Michigan.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
Want to dig deeper into these stocks?