AEP vs. CMS: American Electric Power vs. CMS Energy Stock Comparison
How do American Electric Power (AEP) and CMS Energy (CMS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
American Electric Power (AEP) and CMS Energy (CMS) both fall under the Utilities industry group, but AEP is classified in Electric Utilities while CMS is classified in Multi-Utilities.
| Profile Item | AEP | CMS |
|---|---|---|
| Name | American Electric Power Company, Inc. | CMS Energy Corporation Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Electric Utilities | Multi-Utilities |
| GICS Sub-Industry | Electric Utilities | Multi-Utilities |
| Market Capitalization | 68.90 billion USD | 21.70 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AEP | CMS |
|---|---|---|
| Total Return (1Y) | 8.60% | -1.93% |
| Total Return (3Y, Annualized) | 22.18% | 11.79% |
| Total Return (5Y, Annualized) | 12.81% | 6.25% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AEP | CMS |
|---|---|---|
| Volatility (1Y, Annualized) | 18.45% | 17.58% |
| Beta (5Y) | 0.46 | 0.31 |
| Max Drawdown (5Y) | -29.56% | -28.04% |
| Avg. Volume (3M) | 3.64M | 3.84M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AEP | CMS |
|---|---|---|
| Sharpe Ratio (1Y) | 0.23 | -0.35 |
| Sortino Ratio (1Y) | 0.33 | -0.49 |
Profitability
ROE (TTM)
American Electric Power (AEP) at 10.60% is around its peer norm for ROE, while CMS Energy (CMS) at 5.31% drops into the bottom quartile, signaling weaker returns on shareholders’ equity.
AEP
Utilities industry group
10.60%
- Max
- 17.99%
- Q3
- 12.01%
- AEP
- 10.60%
- Median
- 9.44%
- Q1
- 7.56%
- Min
- 2.17%
CMS
Utilities industry group
5.31%
- Max
- 17.99%
- Q3
- 12.01%
- Median
- 9.44%
- Q1
- 7.56%
- CMS
- 5.31%
- Min
- 2.17%
Net Margin (TTM)
Both American Electric Power (AEP) at 14.21% and CMS Energy (CMS) at 9.72% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
AEP
Utilities industry group
14.21%
- Max
- 28.78%
- Q3
- 17.30%
- AEP
- 14.21%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
CMS
Utilities industry group
9.72%
- Max
- 28.78%
- Q3
- 17.30%
- Median
- 12.73%
- CMS
- 9.72%
- Q1
- 9.18%
- Min
- -0.20%
Operating Margin (TTM)
Both American Electric Power (AEP) at 26.89% and CMS Energy (CMS) at 28.45% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
AEP
Utilities industry group
26.89%
- Max
- 53.83%
- Q3
- 31.12%
- AEP
- 26.89%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
CMS
Utilities industry group
28.45%
- Max
- 53.83%
- Q3
- 31.12%
- CMS
- 28.45%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
Profitability Metrics
| Metric | AEP | CMS |
|---|---|---|
| ROE (TTM) | 10.60% | 5.31% |
| ROA (TTM) | 3.04% | 3.07% |
| Net Margin (TTM) | 14.21% | 9.72% |
| Operating Margin (TTM) | 26.89% | 28.45% |
| Gross Margin (TTM) | 46.62% | 40.76% |
Growth
Revenue Growth
CMS Energy (CMS) at 13.63% sits in the top revenue growth quartile, while American Electric Power (AEP) at 10.93% is closer to the peer norm — faster top-line expansion for CMS.
EPS Growth
Both American Electric Power (AEP) at 19.35% and CMS Energy (CMS) at 4.19% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | AEP | CMS |
|---|---|---|
| Revenue Growth (YoY) | 10.93% | 13.63% |
| Revenue Growth (3Y CAGR) | 3.66% | -0.22% |
| EPS Growth (YoY) | 19.35% | 4.19% |
| EPS Growth (3Y CAGR) | 14.04% | 6.84% |
Financial Strength
Current Ratio (MRQ)
CMS Energy (CMS) at 0.95 keeps current ratio within its industry’s typical mid-range, while American Electric Power (AEP) at 0.51 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for AEP.
AEP
Utilities industry group
0.51
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- AEP
- 0.51
- Min
- 0.29
CMS
Utilities industry group
0.95
- Max
- 1.90
- Q3
- 1.17
- CMS
- 0.95
- Median
- 0.88
- Q1
- 0.66
- Min
- 0.29
Debt / Equity (MRQ)
American Electric Power (AEP) at 1.62 carries an industry-typical debt-to-equity mix, while CMS Energy (CMS) at 1.96 uses more debt funding than most peers.
AEP
Utilities industry group
1.62
- Max
- 2.63
- Q3
- 1.77
- AEP
- 1.62
- Median
- 1.35
- Q1
- 0.84
- Min
- 0.00
CMS
Utilities industry group
1.96
- Max
- 2.63
- CMS
- 1.96
- Q3
- 1.77
- Median
- 1.35
- Q1
- 0.84
- Min
- 0.00
Financial Strength Metrics
| Metric | AEP | CMS |
|---|---|---|
| Current Ratio (MRQ) | 0.51 | 0.95 |
| Debt / Equity (MRQ) | 1.62 | 1.96 |
| Net Debt / EBITDA | 5.76 | 6.33 |
Dividends
Dividend Yield (TTM)
Both American Electric Power (AEP) at 3.00% and CMS Energy (CMS) at 3.21% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AEP
Utilities industry group
3.00%
- Max
- 6.66%
- Q3
- 3.58%
- AEP
- 3.00%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
CMS
Utilities industry group
3.21%
- Max
- 6.66%
- Q3
- 3.58%
- CMS
- 3.21%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
American Electric Power (AEP) at 62.09% pays out a band-typical share of earnings, while CMS Energy (CMS) at 80.45% distributes more than its industry norm — less retained, thinner cover.
AEP
Utilities industry group
62.09%
- Max
- 113.04%
- Q3
- 68.72%
- AEP
- 62.09%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
CMS
Utilities industry group
80.45%
- Max
- 113.04%
- CMS
- 80.45%
- Q3
- 68.72%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
Dividend Metrics
| Metric | AEP | CMS |
|---|---|---|
| Dividend Yield (TTM) | 3.00% | 3.21% |
| Dividend Payout Ratio (TTM) | 62.09% | 80.45% |
Valuation
P/E Ratio (TTM)
American Electric Power (AEP) at 20.67 is near its industry’s usual P/E ratio, while CMS Energy (CMS) at 24.71 sits in the richer quartile — CMS needs stronger growth or earnings quality to justify the premium.
AEP
Utilities industry group
20.67
- Max
- 31.22
- Q3
- 23.30
- AEP
- 20.67
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
CMS
Utilities industry group
24.71
- Max
- 31.22
- CMS
- 24.71
- Q3
- 23.30
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
P/S Ratio (TTM)
On P/S ratio, both American Electric Power (AEP) at 2.92 and CMS Energy (CMS) at 2.42 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
AEP
Utilities industry group
2.92
- Max
- 6.35
- Q3
- 3.63
- AEP
- 2.92
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
CMS
Utilities industry group
2.42
- Max
- 6.35
- Q3
- 3.63
- Median
- 2.63
- CMS
- 2.42
- Q1
- 1.52
- Min
- 0.00
P/B Ratio (MRQ)
American Electric Power (AEP) at 2.10 is valued about in line with its industry on P/B ratio, while CMS Energy (CMS) at 2.28 carries an above-peer premium to book — CMS is pricier on assets.
AEP
Utilities industry group
2.10
- Max
- 3.12
- Q3
- 2.21
- AEP
- 2.10
- Median
- 1.83
- Q1
- 1.46
- Min
- 0.34
CMS
Utilities industry group
2.28
- Max
- 3.12
- CMS
- 2.28
- Q3
- 2.21
- Median
- 1.83
- Q1
- 1.46
- Min
- 0.34
Valuation Metrics
| Metric | AEP | CMS |
|---|---|---|
| P/E Ratio (TTM) | 20.67 | 24.71 |
| P/S Ratio (TTM) | 2.92 | 2.42 |
| P/B Ratio (MRQ) | 2.10 | 2.28 |
| Free Cash Flow Yield (TTM) | -11.28% | -9.54% |