Critical Contrast: American Electric Power (NASDAQ:AEP) versus Oklo (NYSE:OKLO)

American Electric Power (NASDAQ:AEP) and Oklo (NYSE:OKLO) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Volatility & Risk

American Electric Power has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Oklo has a beta of -0.59, suggesting that its stock price is 159% less volatile than the S&P 500.

Profitability

This table compares American Electric Power and Oklo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Electric Power	13.48%	11.41%	3.01%
Oklo	N/A	-32.11%	-13.72%

Institutional and Insider Ownership

75.2% of American Electric Power shares are held by institutional investors. Comparatively, 85.0% of Oklo shares are held by institutional investors. 0.1% of American Electric Power shares are held by company insiders. Comparatively, 21.8% of Oklo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares American Electric Power and Oklo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Electric Power	$19.60 billion	2.65	$2.21 billion	$4.99	19.56
Oklo	N/A	N/A	$11.87 million	N/A	N/A

American Electric Power has higher revenue and earnings than Oklo.

Analyst Ratings

This is a summary of current recommendations for American Electric Power and Oklo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Electric Power	2	7	6	0	2.27
Oklo	0	2	1	0	2.33

American Electric Power currently has a consensus target price of $98.00, suggesting a potential upside of 0.42%. Oklo has a consensus target price of $10.00, suggesting a potential downside of 60.32%. Given American Electric Power’s higher probable upside, analysts clearly believe American Electric Power is more favorable than Oklo.

Summary

American Electric Power beats Oklo on 8 of the 11 factors compared between the two stocks.

About American Electric Power

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, renewable, nuclear, hydro, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. American Electric Power Company, Inc. was incorporated in 1906 and is headquartered in Columbus, Ohio.

About Oklo

Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.