WallStSmart

American Electric Power Co Inc (AEP)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 294% more annual revenue ($86.29B vs $21.88B). AEP leads profitability with a 16.4% profit margin vs 7.7%. LOW appears more attractively valued with a PEG of 2.56. AEP earns a higher WallStSmart Score of 60/100 (C+).

AEP

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.67

LOW

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 3.3Quality: 7.0
Piotroski: 5/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$76.88

Current Price

$137.11

$60.23 premium

UndervaluedFair: $76.88Overvalued
LOWSignificantly Overvalued (-42.8%)

Margin of Safety

-42.8%

Fair Value

$167.23

Current Price

$238.79

$71.56 premium

UndervaluedFair: $167.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$74.53B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.8%8/10

Strong operational efficiency at 22.8%

LOW2 strengths · Avg: 9.5/10
Debt/EquityHealth
-4.3110/10

Conservative balance sheet, low leverage

Market CapQuality
$130.77B9/10

Large-cap with strong market position

Areas to Watch

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

Elevated debt levels

PEG RatioValuation
2.822/10

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

LOW4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

PEG RatioValuation
2.562/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

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 : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% 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 : LOW

The primary concerns for LOW are Return on Equity, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

AEP profiles as a mature stock while LOW is a value play — different risk/reward profiles.

LOW carries more volatility with a beta of 0.96 — expect wider price swings.

AEP is growing revenue faster at 13.2% — sustainability is the question.

LOW generates stronger free cash flow (964M), providing more financial flexibility.

Bottom Line

AEP scores higher overall (60/100 vs 44/100), 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.

Visit Website →

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

Visit Website →

Want to dig deeper into these stocks?