WallStSmart

American Electric Power Co Inc (AEP)vsOmnicom Group Inc (OMC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

American Electric Power Co Inc generates 27% more annual revenue ($21.88B vs $17.27B). AEP leads profitability with a 16.4% profit margin vs -0.3%. AEP appears more attractively valued with a PEG of 2.77. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 4.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.67

OMC

Hold

49

out of 100

Grade: D+

Growth: 5.3Profit: 4.5Value: 4.0Quality: 3.5
Piotroski: 1/9Altman Z: 0.76
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-169.9%)

Margin of Safety

-169.9%

Fair Value

$45.29

Current Price

$128.30

$83.01 premium

UndervaluedFair: $45.29Overvalued

Intrinsic value data unavailable for OMC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$69.74B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

OMC3 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.9%8/10

Revenue surging 27.9% year-over-year

Free Cash FlowQuality
$3.00B8/10

Generating 3.0B in free cash flow

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.613/10

Elevated debt levels

PEG RatioValuation
2.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-12.6%2/10

Earnings declined 12.6%

Free Cash FlowQuality
$-245.90M2/10

Negative free cash flow — burning cash

OMC4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.5%3/10

ROE of 0.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
15.972/10

Expensive relative to growth rate

EPS GrowthGrowth
-10.3%2/10

Earnings declined 10.3%

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 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.

Bull Case : OMC

The strongest argument for OMC centers on Price/Book, Revenue Growth, Free Cash Flow. Revenue growth of 27.9% demonstrates continued momentum.

Bear Case : AEP

The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.

Bear Case : OMC

The primary concerns for OMC are Return on Equity, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

AEP profiles as a mature stock while OMC is a growth play — different risk/reward profiles.

OMC carries more volatility with a beta of 0.71 — expect wider price swings.

OMC is growing revenue faster at 27.9% — sustainability is the question.

OMC generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

AEP scores higher overall (60/100 vs 49/100), backed by strong 16.4% margins and 13.2% 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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Omnicom Group Inc

COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA

Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.

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