Seek Returns logo

AEE vs. WEC: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AEE and WEC, 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 WEC’s is 33.30 billion USD, indicating their market valuations are broadly comparable.

With betas of 0.51 for AEE and 0.44 for WEC, both stocks show similar sensitivity to overall market movements.

SymbolAEEWEC
Company NameAmeren CorporationWEC Energy Group, Inc.
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricRegulated Electric
CEOMartin J. Lyons Jr.Xia Liu
Price96.02 USD104.34 USD
Market Cap26.57 billion USD33.30 billion USD
Beta0.510.44
ExchangeNYSENYSE
IPO DateJanuary 2, 1998March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of AEE and WEC 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.

AEE vs. WEC: Growth of a $10,000 investment over the past one year.

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.

WEC

13.13%

Regulated Electric Industry

Max
18.07%
Q3
12.49%
Median
10.00%
Q1
8.48%
Min
5.02%

In the upper quartile for the Regulated Electric industry, WEC’s Return on Equity of 13.13% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AEE vs. WEC: A comparison of their ROE against the Regulated Electric industry benchmark.

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.

WEC

4.43%

Regulated Electric Industry

Max
5.26%
Q3
4.57%
Median
3.97%
Q1
3.33%
Min
1.92%

WEC’s Return on Invested Capital of 4.43% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.

AEE vs. WEC: A comparison of their ROIC against the Regulated Electric industry benchmark.

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.

WEC

17.98%

Regulated Electric Industry

Max
22.24%
Q3
15.98%
Median
13.10%
Q1
11.03%
Min
3.79%

A Net Profit Margin of 17.98% places WEC in the upper quartile for the Regulated Electric industry, signifying strong profitability and more effective cost management than most of its peers.

AEE vs. WEC: A comparison of their Net Profit Margin against the Regulated Electric industry benchmark.

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.

WEC

25.41%

Regulated Electric Industry

Max
31.57%
Q3
25.65%
Median
21.93%
Q1
17.87%
Min
8.99%

WEC’s Operating Profit Margin of 25.41% is around the midpoint for the Regulated Electric industry, indicating that its efficiency in managing core business operations is typical for the sector.

AEE vs. WEC: A comparison of their Operating Margin against the Regulated Electric industry benchmark.

Profitability at a Glance

SymbolAEEWEC
Return on Equity (TTM)10.15%13.13%
Return on Assets (TTM)2.65%3.38%
Return on Invested Capital (TTM)3.42%4.43%
Net Profit Margin (TTM)15.31%17.98%
Operating Profit Margin (TTM)19.93%25.41%
Gross Profit Margin (TTM)61.78%40.03%

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.

WEC

0.50

Regulated Electric Industry

Max
1.48
Q3
1.06
Median
0.86
Q1
0.73
Min
0.28

WEC’s Current Ratio of 0.50 falls into the lower quartile for the Regulated Electric industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AEE vs. WEC: A comparison of their Current Ratio against the Regulated Electric industry benchmark.

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.

WEC

1.58

Regulated Electric Industry

Max
2.38
Q3
1.97
Median
1.65
Q1
1.28
Min
0.27

WEC’s Debt-to-Equity Ratio of 1.58 is typical for the Regulated Electric industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AEE vs. WEC: A comparison of their D/E Ratio against the Regulated Electric industry benchmark.

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.

WEC

2.74

Regulated Electric Industry

Max
3.07
Q3
2.63
Median
2.41
Q1
2.30
Min
1.87

WEC’s Interest Coverage Ratio of 2.74 is in the upper quartile for the Regulated Electric industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AEE vs. WEC: A comparison of their Interest Coverage against the Regulated Electric industry benchmark.

Financial Strength at a Glance

SymbolAEEWEC
Current Ratio (TTM)0.860.50
Quick Ratio (TTM)0.620.40
Debt-to-Equity Ratio (TTM)0.001.58
Debt-to-Asset Ratio (TTM)0.000.43
Net Debt-to-EBITDA Ratio (TTM)-0.005.05
Interest Coverage Ratio (TTM)2.302.74

Growth

The following charts compare key year-over-year (YoY) growth metrics for AEE and WEC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AEE vs. WEC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AEE vs. WEC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AEE vs. WEC: A comparison of their annual year-over-year 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.

WEC

3.31%

Regulated Electric Industry

Max
6.60%
Q3
4.03%
Median
3.30%
Q1
3.06%
Min
0.00%

WEC’s Dividend Yield of 3.31% is consistent with its peers in the Regulated Electric industry, providing a dividend return that is standard for its sector.

AEE vs. WEC: A comparison of their Dividend Yield against the Regulated Electric industry benchmark.

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.

WEC

66.02%

Regulated Electric Industry

Max
123.06%
Q3
69.07%
Median
62.27%
Q1
52.66%
Min
0.00%

WEC’s Dividend Payout Ratio of 66.02% is within the typical range for the Regulated Electric industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AEE vs. WEC: A comparison of their Payout Ratio against the Regulated Electric industry benchmark.

Dividend at a Glance

SymbolAEEWEC
Dividend Yield (TTM)2.87%3.31%
Dividend Payout Ratio (TTM)60.08%66.02%

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.

WEC

20.36

Regulated Electric Industry

Max
26.46
Q3
21.71
Median
19.07
Q1
17.74
Min
12.74

WEC’s P/E Ratio of 20.36 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.

AEE vs. WEC: A comparison of their P/E Ratio against the Regulated Electric industry benchmark.

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.

WEC

2.89

Regulated Electric Industry

Max
4.21
Q3
3.10
Median
2.78
Q1
2.34
Min
1.46

WEC’s Forward PEG Ratio of 2.89 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.

AEE vs. WEC: A comparison of their Forward PEG Ratio against the Regulated Electric industry benchmark.

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.

WEC

3.67

Regulated Electric Industry

Max
3.88
Q3
3.19
Median
2.68
Q1
1.96
Min
0.27

WEC’s P/S Ratio of 3.67 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.

AEE vs. WEC: A comparison of their P/S Ratio against the Regulated Electric industry benchmark.

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.

WEC

2.55

Regulated Electric Industry

Max
2.95
Q3
2.37
Median
1.89
Q1
1.43
Min
0.55

WEC’s P/B Ratio of 2.55 is in the upper tier for the Regulated Electric 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.

AEE vs. WEC: A comparison of their P/B Ratio against the Regulated Electric industry benchmark.

Valuation at a Glance

SymbolAEEWEC
Price-to-Earnings Ratio (P/E, TTM)21.4320.36
Forward PEG Ratio (TTM)2.802.89
Price-to-Sales Ratio (P/S, TTM)3.363.67
Price-to-Book Ratio (P/B, TTM)2.122.55
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-14.6575.18
EV-to-EBITDA (TTM)7.4113.29
EV-to-Sales (TTM)3.365.92