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 36% more annual revenue ($22.43B vs $16.52B). AEP leads profitability with a 16.3% profit margin vs 7.7%. DTE appears more attractively valued with a PEG of 2.07. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

DTE

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 4.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-54.0%)

Margin of Safety

-54.0%

Fair Value

$79.36

Current Price

$130.16

$50.80 premium

UndervaluedFair: $79.36Overvalued
DTESignificantly Overvalued (-18.4%)

Margin of Safety

-18.4%

Fair Value

$118.02

Current Price

$140.60

$22.58 premium

UndervaluedFair: $118.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.82B9/10

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%

DTE3 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
15.8%8/10

15.8% revenue growth

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.882/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

DTE4 concerns · Avg: 2.8/10
PEG RatioValuation
2.074/10

Expensive relative to growth rate

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

EPS GrowthGrowth
-44.4%2/10

Earnings declined 44.4%

Free Cash FlowQuality
$-321.00M2/10

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. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : DTE

The strongest argument for DTE centers on Debt/Equity, Price/Book, Revenue Growth. Revenue growth of 15.8% 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 : DTE

The primary concerns for DTE are PEG Ratio, Profit Margin, EPS Growth.

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 0.55 — expect wider price swings.

DTE is growing revenue faster at 15.8% — sustainability is the question.

DTE generates stronger free cash flow (-321M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 53/100), 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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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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