WallStSmart

American Electric Power Co Inc (AEP)vsCenterPoint Energy Inc (CNP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 137% more annual revenue ($22.79B vs $9.62B). AEP leads profitability with a 13.8% profit margin vs 11.6%. CNP appears more attractively valued with a PEG of 1.99. CNP earns a higher WallStSmart Score of 66/100 (B-).

AEP

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 6.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

CNP

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 5.0Quality: 2.5
Piotroski: 1/9Altman Z: 0.57

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.87B9/10

Large-cap with strong market position

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

CNP3 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

EPS GrowthGrowth
23.3%8/10

Earnings expanding 23.3% YoY

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.184/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

EPS GrowthGrowth
-43.2%2/10

Earnings declined 43.2%

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

CNP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.994/10

Expensive relative to growth rate

P/E RatioValuation
25.0x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Free Cash FlowQuality
$-487.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin.

Bull Case : CNP

The strongest argument for CNP centers on Price/Book, Operating Margin, EPS Growth. Revenue growth of 10.7% demonstrates continued momentum.

Bear Case : AEP

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

Bear Case : CNP

The primary concerns for CNP are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

AEP carries more volatility with a beta of 0.51 — expect wider price swings.

CNP is growing revenue faster at 10.7% — sustainability is the question.

CNP generates stronger free cash flow (-487M), providing more financial flexibility.

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

Bottom Line

CNP scores higher overall (66/100 vs 56/100) and 10.7% 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.

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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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