American Electric Power Co Inc (AEP)vsCenterPoint Energy Inc (CNP)
AEP
American Electric Power Co Inc
$126.53
-0.19%
UTILITIES · Cap: $70.90B
CNP
CenterPoint Energy Inc
$40.68
+1.73%
UTILITIES · Cap: $27.57B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 140% more annual revenue ($23.61B vs $9.82B). AEP leads profitability with a 14.2% profit margin vs 11.8%. CNP appears more attractively valued with a PEG of 2.13. CNP earns a higher WallStSmart Score of 66/100 (B-).
AEP
Buy64
out of 100
Grade: C+
CNP
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-82.5%
Fair Value
$69.32
Current Price
$126.53
$57.21 premium
Margin of Safety
-86.8%
Fair Value
$22.59
Current Price
$40.67
$18.08 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 26.9%
Strong operational efficiency at 30.4%
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
Expensive relative to growth rate
Weak financial health signals
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. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : CNP
The strongest argument for CNP centers on Operating Margin, Price/Book. Revenue growth of 10.2% demonstrates continued momentum.
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 : CNP
The primary concerns for CNP are PEG Ratio, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 2.14 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.
CNP generates stronger free cash flow (-592M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CNP scores higher overall (66/100 vs 64/100) and 10.2% revenue growth. 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.
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 →CenterPoint Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
CenterPoint Energy, Inc. is an American Fortune 500 electric and natural gas utility serving several markets in the American states of Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas.
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