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AEP vs CMS

AEP
American Electric Power Company, Inc.
NEUTRAL
Price
$131.85
Market Cap
$71.67B
Sector
Utilities
AI Confidence
90%
CMS
CMS Energy Corporation
NEUTRAL
Price
$76.27
Market Cap
$23.49B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AEP
19.8
CMS
21.67
Forward P/E
AEP
19.22
CMS
18.28
P/B Ratio
AEP
2.29
CMS
2.62
P/S Ratio
AEP
3.28
CMS
2.75
EV/EBITDA
AEP
13.54
CMS
14.1

Profitability

Gross Margin
AEP
47.52%
CMS
41.53%
Operating Margin
AEP
22.84%
CMS
21.68%
Profit Margin
AEP
16.36%
CMS
12.54%
ROE
AEP
12.49%
CMS
10.86%
ROA
AEP
3.17%
CMS
3.15%

Growth

Revenue Growth
AEP
13.2%
CMS
12.3%
Earnings Growth
AEP
-12.6%
CMS
6.6%

Financial Health

Debt/Equity
AEP
1.54
CMS
1.95
Current Ratio
AEP
0.46
CMS
0.98
Quick Ratio
AEP
0.25
CMS
0.52

Dividends

Dividend Yield
AEP
2.9%
CMS
2.99%
Payout Ratio
AEP
56.16%
CMS
61.56%

AI Verdict

AEP NEUTRAL

AEP shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Company has established market presence
Risks
Limited historical data available for full assessment
CMS NEUTRAL

CMS Energy exhibits strong operational performance and a remarkable earnings track record, but it is currently trading at a significant premium to its deterministic value. With a Piotroski F-Score of 4/9, the company's financial health is stable but not strong, further complicated by a current ratio below 1.0. While the company outperforms sector averages in ROE and profit margins, the current price of $76.27 far exceeds both the Graham Number ($48.02) and the Intrinsic Value ($59.49). The combination of bearish insider sentiment and a high PEG ratio suggests limited immediate upside at current valuation levels.

Strengths
Exceptional earnings consistency with beats in nearly all of the last 25 quarters
Superior ROE (10.86%) compared to the sector average (-4.61%)
Strong profit margins (12.54%) significantly exceeding sector peers
Risks
Significant overvaluation relative to Graham Number and Intrinsic Value
Liquidity concerns indicated by a Current Ratio of 0.98 and Quick Ratio of 0.52
High Debt/Equity ratio (1.95) exceeding the sector average

Compare Another Pair

AEP vs CMS: Head-to-Head Comparison

This page compares American Electric Power Company, Inc. (AEP) and CMS Energy Corporation (CMS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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