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AEP vs CNP

AEP
American Electric Power Company, Inc.
NEUTRAL
Price
$131.85
Market Cap
$71.67B
Sector
Utilities
AI Confidence
90%
CNP
CenterPoint Energy, Inc.
NEUTRAL
Price
$42.47
Market Cap
$27.78B
Sector
Utilities
AI Confidence
85%

Valuation

P/E Ratio
AEP
19.8
CNP
26.06
Forward P/E
AEP
19.22
CNP
20.4
P/B Ratio
AEP
2.29
CNP
2.49
P/S Ratio
AEP
3.28
CNP
2.95
EV/EBITDA
AEP
13.54
CNP
14.0

Profitability

Gross Margin
AEP
47.52%
CNP
45.92%
Operating Margin
AEP
22.84%
CNP
22.12%
Profit Margin
AEP
16.36%
CNP
11.38%
ROE
AEP
12.49%
CNP
9.56%
ROA
AEP
3.17%
CNP
2.84%

Growth

Revenue Growth
AEP
13.2%
CNP
1.9%
Earnings Growth
AEP
-12.6%
CNP
6.7%

Financial Health

Debt/Equity
AEP
1.54
CNP
2.16
Current Ratio
AEP
0.46
CNP
1.17
Quick Ratio
AEP
0.25
CNP
0.47

Dividends

Dividend Yield
AEP
2.9%
CNP
2.17%
Payout Ratio
AEP
56.16%
CNP
54.6%

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
CNP NEUTRAL

CNP presents a conflict between strong historical performance and current overvaluation. The deterministic baseline is weak, with a Piotroski F-Score of 4/9 (Stable) and a current price of $42.47 that significantly exceeds both the Graham Number ($25.03) and Intrinsic Value ($27.79). While the company maintains healthy operating margins and a sustainable dividend payout, the high Debt/Equity ratio (2.16) and bearish technical trend (10/100) suggest limited immediate upside. The stock is currently trading at a premium that is not fully supported by its low revenue growth (1.90%).

Strengths
Consistent track record of earnings beats over 25 quarters
Strong operating margin of 22.12% compared to sector peers
Sustainable dividend payout ratio of 54.60%
Risks
Significant valuation gap between current price and Graham/Intrinsic values
High leverage with a Debt/Equity ratio of 2.16
Stagnant revenue growth (1.90% YoY)

Compare Another Pair

AEP vs CNP: Head-to-Head Comparison

This page compares American Electric Power Company, Inc. (AEP) and CenterPoint Energy, Inc. (CNP) 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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