WallStSmart

American Electric Power Co Inc (AEP)vsDevon Energy Corporation (DVN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 40% more annual revenue ($22.43B vs $16.00B). AEP leads profitability with a 16.3% profit margin vs 14.2%. AEP appears more attractively valued with a PEG of 2.27. AEP earns a higher WallStSmart Score of 64/100 (C+).

AEP

Buy

64

out of 100

Grade: C+

Growth: 5.3Profit: 7.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

DVN

Hold

44

out of 100

Grade: D

Growth: 2.0Profit: 6.0Value: 4.0Quality: 5.0
Piotroski: 3/9Altman Z: 1.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AEP.

DVNSignificantly Overvalued (-63.1%)

Margin of Safety

-63.1%

Fair Value

$27.78

Current Price

$46.00

$18.22 premium

UndervaluedFair: $27.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.16B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.7%8/10

Strong operational efficiency at 23.7%

DVN3 strengths · Avg: 8.3/10
Market CapQuality
$52.26B9/10

Large-cap with strong market position

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Debt/EquityHealth
1.633/10

Elevated debt levels

Free Cash FlowQuality
$-1.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.672/10

Distress zone — elevated risk

DVN4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.932/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.8%2/10

Revenue declined 0.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : AEP

The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.

Bull Case : DVN

The strongest argument for DVN centers on Market Cap, P/E Ratio, Price/Book.

Bear Case : AEP

The primary concerns for AEP are PEG Ratio, Debt/Equity, Free Cash Flow. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : DVN

The primary concerns for DVN are Altman Z-Score, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AEP profiles as a mature stock while DVN is a declining play — different risk/reward profiles.

AEP carries more volatility with a beta of 0.55 — expect wider price swings.

AEP is growing revenue faster at 10.2% — sustainability is the question.

DVN generates stronger free cash flow (635M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (64/100 vs 44/100), backed by strong 16.3% margins and 10.2% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Electric Power Co Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.

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Devon Energy Corporation

ENERGY · OIL & GAS E&P · USA

Devon Energy Corporation is an American energy company engaged in hydrocarbon exploration in the American market.

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