American Electric Power Co Inc (AEP)vsWalmart Inc. (WMT)
AEP
American Electric Power Co Inc
$130.16
-1.21%
UTILITIES · Cap: $70.82B
WMT
Walmart Inc.
$130.43
+0.37%
CONSUMER DEFENSIVE · Cap: $1.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 3079% more annual revenue ($713.16B vs $22.43B). AEP leads profitability with a 16.3% profit margin vs 3.1%. AEP appears more attractively valued with a PEG of 2.88. AEP earns a higher WallStSmart Score of 64/100 (C+).
AEP
Buy64
out of 100
Grade: C+
WMT
Hold43
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-54.0%
Fair Value
$79.36
Current Price
$130.16
$50.80 premium
Margin of Safety
-90.0%
Fair Value
$68.54
Current Price
$130.43
$61.89 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 23.7%
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Generating 6.1B in free cash flow
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Trading at 10.4x book value
3.1% margin — thin
Operating margin of 4.6%
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 16.3% and operating margin at 23.7%. Revenue growth of 10.2% demonstrates continued momentum.
Bull Case : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : WMT
The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 47.7x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
AEP profiles as a mature stock while WMT is a value play — different risk/reward profiles.
WMT carries more volatility with a beta of 0.65 — expect wider price swings.
AEP is growing revenue faster at 10.2% — sustainability is the question.
WMT generates stronger free cash flow (6.1B), providing more financial flexibility.
Bottom Line
AEP scores higher overall (64/100 vs 43/100), 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.
Visit Website →Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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