Critical Analysis: American Electric Power (NASDAQ:AEP) and Oklo (NYSE:OKLO)

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

Institutional and Insider Ownership

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

Risk & Volatility

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

Profitability

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

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

Analyst Ratings

This is a summary of current recommendations and price targets for Oklo and American Electric Power, as provided by MarketBeat.com.

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

Oklo currently has a consensus price target of $10.00, indicating a potential downside of 54.11%. American Electric Power has a consensus price target of $98.27, indicating a potential upside of 1.62%. Given American Electric Power’s higher probable upside, analysts plainly believe American Electric Power is more favorable than Oklo.

Earnings & Valuation

This table compares Oklo and American Electric Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oklo	N/A	N/A	$11.87 million	N/A	N/A
American Electric Power	$19.60 billion	2.63	$2.21 billion	$4.99	19.38

American Electric Power has higher revenue and earnings than Oklo.

Summary

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

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.

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.