Stocks analysis

AEP vs AES Stock Comparison

Scores Breakdown

Metric AEP AES
📈 Growth 12/30 12/30
💰 Profitability 14/20 10/20
🏦 Financial Health 14/20 12/20
💵 Valuation 15/20 8/20
⚠️ Risk (lower is better) 5/10 4/10
Overall Score 60/100 48/100

Side-by-Side Summaries

AEP Analysis AES Analysis

📈 Growth & Financial Trajectory

Across the 8 quarters, Revenues rose from about $4.70B (2024 Q3) to $5.45B (2026 Q2), a ~16% gain, but with volatility (peak around $6.01B in 2025 Q3 and dips in several quarters). Net income ranged from about $0.92B (2024 Q3) to a high of about $1.29B (2025 Q2), ending near $0.75B in 2026 Q2. The trajectory shows modest top-line growth with mixed earnings momentum; the end result is below the initial earnings level despite higher revenue.

💰 Margins & Cash Flow

Operating margins have generally trended in the mid-20s percent across several quarters (roughly mid-20s in 2024 Q4 and 2025 Q3; about 23% in 2026 Q2). Cash flow from operations remained positive in most periods (roughly $1.2B–$1.9B), while investing activities were sizable and often negative, pressuring overall free cash flow. Net cash flow patterns reflect ongoing capital spending typical of a regulated utility.

🛡️ Balance Sheet & Liquidity

Total assets run around $110B–$122B with equity in the $27B–$33B range and long-term debt near $42B–$50B. Liabilities exceed current assets in several quarters, yielding weaker near-term liquidity (current ratio often below 1). Still, a large asset base and regulated cash flows provide resilience, with debt levels offset by steady rate recovery.

⚠️ Key Drivers & Risks

  • Drivers: Regulated utility demand and rate recovery leverage, ongoing energy transition investments.
  • Risks: Interest-rate/regulatory sensitivity and capital-intensity; earnings can remain volatile around quarterly shifts in demand and tax items.

📈 Growth & Financial Trajectory

Over the observed 7 quarters, AES's revenues hovered near $3.0B, ending around $2.42B in 2026 Q2, while net income remained positive overall, indicating resilience despite quarterly volatility. The trend shows modest growth from early 2025 into late 2025, with some weakness in 2026 Q2 driven by lower topline and mix. Overall, earnings resilience persisted through the period.

💰 Margins & Cash Flow

Gross margin ranged roughly in the high 20s and low 30s percentage; operating margin varied around the mid-teens in stronger quarters and contracted when costs rose. Net cash from operating activities was typically solid (around $1.0B per quarter), but investing cash flow was consistently negative, leading to fluctuating free cash flow and reliance on financing for liquidity.

🛡️ Balance Sheet & Liquidity

Total assets near $50B+, liabilities around $40B, and equity near $9–9.8B. Current ratio hovered below 1 in some quarters, reflecting funded working capital needs. Redeemable interests and temporary equity add complexity; overall balance sheet appears leveraged but with steady cash generation.

⚠️ Key Drivers & Risks

  • Drivers: Regulated utility earnings, renewable integration, stable demand
  • Risks: Commodity/energy price sensitivity, regulatory/policy shifts, interest-rate exposure