WallStSmart

American Electric Power Co Inc (AEP)vsDTE Energy Company (DTE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 38% more annual revenue ($21.88B vs $15.81B). AEP leads profitability with a 16.4% profit margin vs 9.3%. DTE appears more attractively valued with a PEG of 2.49. DTE earns a higher WallStSmart Score of 67/100 (B-).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

DTE

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 6.0Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued
DTEUndervalued (+57.6%)

Margin of Safety

+57.6%

Fair Value

$329.47

Current Price

$143.45

$186.02 discount

UndervaluedFair: $329.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

DTE4 strengths · Avg: 8.3/10
Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
28.9%8/10

Revenue surging 28.9% year-over-year

EPS GrowthGrowth
25.5%8/10

Earnings expanding 25.5% YoY

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

DTE3 concerns · Avg: 2.7/10
PEG RatioValuation
2.494/10

Expensive relative to growth rate

Free Cash FlowQuality
$-302.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.742/10

Distress zone — elevated risk

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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : DTE

The strongest argument for DTE centers on Debt/Equity, Price/Book, Revenue Growth. Revenue growth of 28.9% demonstrates continued momentum.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.

Bear Case : DTE

The primary concerns for DTE are PEG Ratio, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

AEP profiles as a mature stock while DTE is a growth play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.57 — expect wider price swings.

DTE is growing revenue faster at 28.9% — sustainability is the question.

AEP generates stronger free cash flow (-246M), providing more financial flexibility.

Bottom Line

DTE scores higher overall (67/100 vs 60/100) and 28.9% 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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DTE Energy Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

DTE Energy (formerly Detroit Edison until 1996) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services in the United States and Canada.

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