American Electric Power Co Inc (AEP)vsMGE Energy Inc (MGEE)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
MGEE
MGE Energy Inc
$76.21
-0.70%
UTILITIES · Cap: $2.71B
Smart Verdict
WallStSmart Research — data-driven comparison
American Electric Power Co Inc generates 2911% more annual revenue ($21.88B vs $726.65M). MGEE leads profitability with a 18.7% profit margin vs 16.4%. AEP appears more attractively valued with a PEG of 2.77. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
MGEE
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-43.6%
Fair Value
$55.65
Current Price
$76.21
$20.56 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 22.8%
Reasonable price relative to book value
Strong operational efficiency at 20.5%
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : MGEE
The strongest argument for MGEE centers on Price/Book, Operating Margin. Profitability is solid with margins at 18.7% and operating margin at 20.5%. Revenue growth of 11.7% 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 : MGEE
The primary concerns for MGEE are PEG Ratio, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
MGEE carries more volatility with a beta of 0.78 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
MGEE generates stronger free cash flow (-53M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AEP scores higher overall (60/100 vs 59/100), backed by strong 16.4% margins and 13.2% 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 →MGE Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
MGE Energy, Inc., is a utility holding company primarily in Wisconsin. The company is headquartered in Madison, Wisconsin.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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