American Electric Power Co Inc (AEP)vsSherwin-Williams Co (SHW)
AEP
American Electric Power Co Inc
$128.30
-0.39%
UTILITIES · Cap: $69.74B
SHW
Sherwin-Williams Co
$321.95
+2.63%
BASIC MATERIALS · Cap: $77.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Sherwin-Williams Co generates 8% more annual revenue ($23.57B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 10.9%. SHW appears more attractively valued with a PEG of 2.63. AEP earns a higher WallStSmart Score of 60/100 (C+).
AEP
Buy60
out of 100
Grade: C+
SHW
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-169.9%
Fair Value
$45.29
Current Price
$128.30
$83.01 premium
Margin of Safety
-244.2%
Fair Value
$92.84
Current Price
$321.95
$229.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.8%
Every $100 of equity generates 59 in profit
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
Trading at 17.2x book value
1.4% earnings growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : SHW
The strongest argument for SHW centers on Return on Equity, Market Cap.
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 : SHW
The primary concerns for SHW are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
AEP profiles as a mature stock while SHW is a value play — different risk/reward profiles.
SHW carries more volatility with a beta of 1.24 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
SHW generates stronger free cash flow (862M), providing more financial flexibility.
Bottom Line
AEP scores higher overall (60/100 vs 54/100), backed by strong 16.4% margins and 13.2% revenue growth. Both earn "Buy" and "Buy" 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.
Visit Website →Sherwin-Williams Co
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Sherwin Williams Company is a Cleveland, Ohio based company in the paint and coating manufacturing industry. The company primarily engages in the manufacture, distribution, and sale of paints, coatings, floorcoverings, and related products to professional, industrial, commercial, and retail customers primarily in North and South America and Europe.
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