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AEP vs. AWK: American Electric Power vs. American Water Works Stock Comparison

How do American Electric Power (AEP) and American Water Works (AWK) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

American Electric Power (AEP) and American Water Works (AWK) both fall under the Utilities industry group, but AEP is classified in Electric Utilities while AWK is classified in Water Utilities.

Company profile comparison for American Electric Power (AEP) and American Water Works (AWK)
Profile ItemAEPAWK
NameAmerican Electric Power Company, Inc.American Water Works Company, Inc.
Country/RegionUnited StatesUnited States
GICS SectorUtilitiesUtilities
GICS Industry GroupUtilitiesUtilities
GICS IndustryElectric UtilitiesWater Utilities
GICS Sub-IndustryElectric UtilitiesWater Utilities
Market Capitalization68.90 billion USD29.92 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962April 23, 2008
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AEP
AWK
GSPC
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American Electric Power (AEP) vs. American Water Works (AWK), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Electric Power (AEP) and American Water Works (AWK). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for American Electric Power (AEP) and American Water Works (AWK). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Total Return (1Y)8.60%17.61%
Total Return (3Y, Annualized)22.18%9.05%
Total Return (5Y, Annualized)12.81%-0.39%

Risk Profile

Drawdown History

AEP
AWK
GSPC
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American Electric Power (AEP) vs. American Water Works (AWK), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for American Electric Power (AEP) and American Water Works (AWK). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Volatility (1Y, Annualized)18.45%22.53%
Beta (5Y)0.460.54
Max Drawdown (5Y)-29.56%-37.10%
Avg. Volume (3M)3.64M2.03M

Risk-Adjusted Performance

Risk-Return Positioning

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AEP and AWK are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Sharpe Ratio (1Y)0.230.59
Sortino Ratio (1Y)0.330.95

Profitability

ROE (TTM)

Both American Electric Power (AEP) at 10.60% and American Water Works (AWK) at 9.95% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

AEP

Utilities industry group

10.60%

Max
17.99%
Q3
12.01%
AEP
10.60%
Median
9.44%
Q1
7.56%
Min
2.17%

AWK

Utilities industry group

9.95%

Max
17.99%
Q3
12.01%
AWK
9.95%
Median
9.44%
Q1
7.56%
Min
2.17%
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their ROE against the Utilities industry group benchmark.

Net Margin (TTM)

American Water Works (AWK) at 21.26% retains a top-quartile share of revenue as profit, ahead of American Electric Power (AEP) at 14.21%, which keeps about the industry-typical share.

AEP

Utilities industry group

14.21%

Max
28.78%
Q3
17.30%
AEP
14.21%
Median
12.73%
Q1
9.18%
Min
-0.20%

AWK

Utilities industry group

21.26%

Max
28.78%
AWK
21.26%
Q3
17.30%
Median
12.73%
Q1
9.18%
Min
-0.20%
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their net margin against the Utilities industry group benchmark.

Operating Margin (TTM)

American Water Works (AWK) at 43.18% operates in the top operating margin quartile, ahead of American Electric Power (AEP) at 26.89%, which runs around its industry’s norm.

AEP

Utilities industry group

26.89%

Max
53.83%
Q3
31.12%
AEP
26.89%
Median
23.62%
Q1
15.45%
Min
-4.90%

AWK

Utilities industry group

43.18%

Max
53.83%
AWK
43.18%
Q3
31.12%
Median
23.62%
Q1
15.45%
Min
-4.90%
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their operating margin against the Utilities industry group benchmark.

Profitability Metrics

Profitability metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
ROE (TTM)10.60%9.95%
ROA (TTM)3.04%3.50%
Net Margin (TTM)14.21%21.26%
Operating Margin (TTM)26.89%43.18%
Gross Margin (TTM)46.62%61.86%

Growth

Revenue Growth

Both American Electric Power (AEP) at 10.93% and American Water Works (AWK) at 9.74% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both American Electric Power (AEP) at 19.35% and American Water Works (AWK) at 5.57% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Revenue Growth (YoY)10.93%9.74%
Revenue Growth (3Y CAGR)3.66%10.67%
EPS Growth (YoY)19.35%5.57%
EPS Growth (3Y CAGR)14.04%8.06%

Financial Strength

Current Ratio (MRQ)

Both American Electric Power (AEP) at 0.51 and American Water Works (AWK) at 0.39 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

AEP

Utilities industry group

0.51

Max
1.90
Q3
1.17
Median
0.88
Q1
0.66
AEP
0.51
Min
0.29

AWK

Utilities industry group

0.39

Max
1.90
Q3
1.17
Median
0.88
Q1
0.66
AWK
0.39
Min
0.29
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their current ratio against the Utilities industry group benchmark.

Debt / Equity (MRQ)

Both American Electric Power (AEP) at 1.62 and American Water Works (AWK) at 1.38 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

AEP

Utilities industry group

1.62

Max
2.63
Q3
1.77
AEP
1.62
Median
1.35
Q1
0.84
Min
0.00

AWK

Utilities industry group

1.38

Max
2.63
Q3
1.77
AWK
1.38
Median
1.35
Q1
0.84
Min
0.00
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their debt-to-equity ratio against the Utilities industry group benchmark.

Financial Strength Metrics

Financial strength metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Current Ratio (MRQ)0.510.39
Debt / Equity (MRQ)1.621.38
Net Debt / EBITDA5.765.49

Dividends

Dividend Yield (TTM)

Both American Electric Power (AEP) at 3.00% and American Water Works (AWK) at 2.26% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

AEP

Utilities industry group

3.00%

Max
6.66%
Q3
3.58%
AEP
3.00%
Median
2.85%
Q1
0.66%
Min
0.00%

AWK

Utilities industry group

2.26%

Max
6.66%
Q3
3.58%
Median
2.85%
AWK
2.26%
Q1
0.66%
Min
0.00%
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their dividend yield against the Utilities industry group benchmark.

Dividend Payout Ratio (TTM)

Both American Electric Power (AEP) at 62.09% and American Water Works (AWK) at 59.60% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

AEP

Utilities industry group

62.09%

Max
113.04%
Q3
68.72%
AEP
62.09%
Median
56.38%
Q1
32.38%
Min
0.00%

AWK

Utilities industry group

59.60%

Max
113.04%
Q3
68.72%
AWK
59.60%
Median
56.38%
Q1
32.38%
Min
0.00%
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their payout ratio against the Utilities industry group benchmark.

Dividend Metrics

Dividend metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
Dividend Yield (TTM)3.00%2.26%
Dividend Payout Ratio (TTM)62.09%59.60%

Valuation

P/E Ratio (TTM)

American Electric Power (AEP) at 20.67 is near its industry’s usual P/E ratio, while American Water Works (AWK) at 26.00 sits in the richer quartile — AWK needs stronger growth or earnings quality to justify the premium.

AEP

Utilities industry group

20.67

Max
31.22
Q3
23.30
AEP
20.67
Median
19.64
Q1
15.17
Min
3.34

AWK

Utilities industry group

26.00

Max
31.22
AWK
26.00
Q3
23.30
Median
19.64
Q1
15.17
Min
3.34
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their P/E ratio against the Utilities industry group benchmark.

P/S Ratio (TTM)

American Electric Power (AEP) at 2.92 is priced about in line with its industry on P/S ratio, while American Water Works (AWK) at 5.60 sits in the pricier quartile — AWK costs more per dollar of sales.

AEP

Utilities industry group

2.92

Max
6.35
Q3
3.63
AEP
2.92
Median
2.63
Q1
1.52
Min
0.00

AWK

Utilities industry group

5.60

Max
6.35
AWK
5.60
Q3
3.63
Median
2.63
Q1
1.52
Min
0.00
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their P/S ratio against the Utilities industry group benchmark.

P/B Ratio (MRQ)

American Electric Power (AEP) at 2.10 is valued about in line with its industry on P/B ratio, while American Water Works (AWK) at 2.51 carries an above-peer premium to book — AWK is pricier on assets.

AEP

Utilities industry group

2.10

Max
3.12
Q3
2.21
AEP
2.10
Median
1.83
Q1
1.46
Min
0.34

AWK

Utilities industry group

2.51

Max
3.12
AWK
2.51
Q3
2.21
Median
1.83
Q1
1.46
Min
0.34
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American Electric Power (AEP) vs. American Water Works (AWK): A comparison of their P/B ratio against the Utilities industry group benchmark.

Valuation Metrics

Valuation metrics for American Electric Power (AEP) and American Water Works (AWK)
MetricAEPAWK
P/E Ratio (TTM)20.6726.00
P/S Ratio (TTM)2.925.60
P/B Ratio (MRQ)2.102.51
Free Cash Flow Yield (TTM)-11.28%-5.45%