AEE vs. AWK: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AEE and AWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AEE’s market capitalization stands at 26.57 billion USD, while AWK’s is 27.31 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.51 for AEE and 0.70 for AWK, both stocks show similar sensitivity to overall market movements.
| Symbol | AEE | AWK |
|---|---|---|
| Company Name | Ameren Corporation | American Water Works Company, Inc. |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Regulated Water |
| CEO | Martin J. Lyons Jr. | John C. Griffith |
| Price | 96.02 USD | 140.05 USD |
| Market Cap | 26.57 billion USD | 27.31 billion USD |
| Beta | 0.51 | 0.70 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1998 | April 23, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AEE and AWK by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AEE
10.15%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
AEE’s Return on Equity of 10.15% is on par with the norm for the Regulated Electric industry, indicating its profitability relative to shareholder equity is typical for the sector.
AWK
10.35%
Regulated Water Industry
- Max
- 10.35%
- Q3
- 10.08%
- Median
- 8.98%
- Q1
- 8.05%
- Min
- 7.36%
In the upper quartile for the Regulated Water industry, AWK’s Return on Equity of 10.35% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AEE
3.42%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
AEE’s Return on Invested Capital of 3.42% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.
AWK
4.28%
Regulated Water Industry
- Max
- 6.92%
- Q3
- 6.34%
- Median
- 4.28%
- Q1
- 3.77%
- Min
- 2.54%
AWK’s Return on Invested Capital of 4.28% is in line with the norm for the Regulated Water industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AEE
15.31%
Regulated Electric Industry
- Max
- 22.24%
- Q3
- 15.98%
- Median
- 13.10%
- Q1
- 11.03%
- Min
- 3.79%
AEE’s Net Profit Margin of 15.31% is aligned with the median group of its peers in the Regulated Electric industry. This indicates its ability to convert revenue into profit is typical for the sector.
AWK
22.24%
Regulated Water Industry
- Max
- 27.17%
- Q3
- 24.08%
- Median
- 20.75%
- Q1
- 16.72%
- Min
- 6.15%
AWK’s Net Profit Margin of 22.24% is aligned with the median group of its peers in the Regulated Water industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AEE
19.93%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
AEE’s Operating Profit Margin of 19.93% is around the midpoint for the Regulated Electric industry, indicating that its efficiency in managing core business operations is typical for the sector.
AWK
36.59%
Regulated Water Industry
- Max
- 42.87%
- Q3
- 36.84%
- Median
- 28.06%
- Q1
- 23.46%
- Min
- 12.18%
AWK’s Operating Profit Margin of 36.59% is around the midpoint for the Regulated Water industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AEE | AWK |
|---|---|---|
| Return on Equity (TTM) | 10.15% | 10.35% |
| Return on Assets (TTM) | 2.65% | 3.23% |
| Return on Invested Capital (TTM) | 3.42% | 4.28% |
| Net Profit Margin (TTM) | 15.31% | 22.24% |
| Operating Profit Margin (TTM) | 19.93% | 36.59% |
| Gross Profit Margin (TTM) | 61.78% | 56.18% |
Financial Strength
Current Ratio
AEE
0.86
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
AEE’s Current Ratio of 0.86 aligns with the median group of the Regulated Electric industry, indicating that its short-term liquidity is in line with its sector peers.
AWK
0.49
Regulated Water Industry
- Max
- 0.98
- Q3
- 0.94
- Median
- 0.81
- Q1
- 0.59
- Min
- 0.46
AWK’s Current Ratio of 0.49 falls into the lower quartile for the Regulated Water industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AEE
0.00
Regulated Electric Industry
- Max
- 2.38
- Q3
- 1.97
- Median
- 1.65
- Q1
- 1.28
- Min
- 0.27
At 0.00, AEE’s Debt-to-Equity Ratio is unusually low for the Regulated Electric industry. This highlights a conservative capital structure, suggesting the company prioritizes financial stability over aggressive growth funded by debt.
AWK
1.38
Regulated Water Industry
- Max
- 1.38
- Q3
- 1.15
- Median
- 0.90
- Q1
- 0.77
- Min
- 0.68
AWK’s leverage is in the upper quartile of the Regulated Water industry, with a Debt-to-Equity Ratio of 1.38. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
AEE
2.30
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
AEE’s Interest Coverage Ratio of 2.30 is positioned comfortably within the norm for the Regulated Electric industry, indicating a standard and healthy capacity to cover its interest payments.
AWK
3.24
Regulated Water Industry
- Max
- 4.22
- Q3
- 4.04
- Median
- 3.07
- Q1
- 3.00
- Min
- 2.48
AWK’s Interest Coverage Ratio of 3.24 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AEE | AWK |
|---|---|---|
| Current Ratio (TTM) | 0.86 | 0.49 |
| Quick Ratio (TTM) | 0.62 | 0.44 |
| Debt-to-Equity Ratio (TTM) | 0.00 | 1.38 |
| Debt-to-Asset Ratio (TTM) | 0.00 | 0.44 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.00 | 5.31 |
| Interest Coverage Ratio (TTM) | 2.30 | 3.24 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AEE and AWK. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AEE
2.87%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
AEE’s Dividend Yield of 2.87% is in the lower quartile for the Regulated Electric industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
AWK
2.23%
Regulated Water Industry
- Max
- 3.58%
- Q3
- 2.94%
- Median
- 2.44%
- Q1
- 2.07%
- Min
- 0.81%
AWK’s Dividend Yield of 2.23% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AEE
60.08%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
AEE’s Dividend Payout Ratio of 60.08% is within the typical range for the Regulated Electric industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
AWK
55.65%
Regulated Water Industry
- Max
- 99.35%
- Q3
- 57.39%
- Median
- 55.65%
- Q1
- 52.94%
- Min
- 0.00%
AWK’s Dividend Payout Ratio of 55.65% is within the typical range for the Regulated Water industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AEE | AWK |
|---|---|---|
| Dividend Yield (TTM) | 2.87% | 2.23% |
| Dividend Payout Ratio (TTM) | 60.08% | 55.65% |
Valuation
Price-to-Earnings Ratio
AEE
21.43
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
AEE’s P/E Ratio of 21.43 is within the middle range for the Regulated Electric industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
AWK
25.50
Regulated Water Industry
- Max
- 26.42
- Q3
- 23.54
- Median
- 20.16
- Q1
- 17.14
- Min
- 8.21
A P/E Ratio of 25.50 places AWK in the upper quartile for the Regulated Water industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AEE
2.80
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
AEE’s Forward PEG Ratio of 2.80 is within the middle range of its peers in the Regulated Electric industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
AWK
3.73
Regulated Water Industry
- Max
- 3.77
- Q3
- 3.33
- Median
- 2.11
- Q1
- 1.48
- Min
- 0.23
A Forward PEG Ratio of 3.73 places AWK in the upper quartile for the Regulated Water industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
Price-to-Sales Ratio
AEE
3.36
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
AEE’s P/S Ratio of 3.36 is in the upper echelon for the Regulated Electric industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
AWK
5.67
Regulated Water Industry
- Max
- 6.05
- Q3
- 4.92
- Median
- 3.71
- Q1
- 2.93
- Min
- 2.18
AWK’s P/S Ratio of 5.67 is in the upper echelon for the Regulated Water industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AEE
2.12
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
AEE’s P/B Ratio of 2.12 is within the conventional range for the Regulated Electric industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
AWK
2.59
Regulated Water Industry
- Max
- 3.06
- Q3
- 2.19
- Median
- 1.97
- Q1
- 1.62
- Min
- 1.25
AWK’s P/B Ratio of 2.59 is in the upper tier for the Regulated Water industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AEE | AWK |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.43 | 25.50 |
| Forward PEG Ratio (TTM) | 2.80 | 3.73 |
| Price-to-Sales Ratio (P/S, TTM) | 3.36 | 5.67 |
| Price-to-Book Ratio (P/B, TTM) | 2.12 | 2.59 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.65 | -31.04 |
| EV-to-EBITDA (TTM) | 7.41 | 15.39 |
| EV-to-Sales (TTM) | 3.36 | 8.66 |