AEP vs. AWK: A Head-to-Head Stock Comparison

Updated on July 7, 2025

Here’s a clear look at AEP and AWK, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AEP’s market capitalization of 55.48 billion USD is substantially larger than AWK’s 27.31 billion USD, indicating a significant difference in their market valuations.

AWK carries a higher beta at 0.70, indicating it’s more sensitive to market moves, while AEP (beta: 0.41) exhibits greater stability.

Symbol	AEP	AWK
Company Name	American Electric Power Company, Inc.	American Water Works Company, Inc.
Country	US	US
Sector	Utilities	Utilities
Industry	Regulated Electric	Regulated Water
CEO	William J. Fehrman	John C. Griffith
Price	103.86 USD	140.05 USD
Market Cap	55.48 billion USD	27.31 billion USD
Beta	0.41	0.70
Exchange	NASDAQ	NYSE
IPO Date	January 2, 1962	April 23, 2008
ADR	No	No

Historical Performance

This chart compares the performance of AEP 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.

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

Profitability

Return on Equity

AEP

10.33%

Regulated Electric Industry

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

AEP’s Return on Equity of 10.33% 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.

AEP vs. AWK: A comparison of their ROE against their respective Regulated Electric and Regulated Water industry benchmarks.

Return on Invested Capital

AEP

4.16%

Regulated Electric Industry

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

AEP’s Return on Invested Capital of 4.16% 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.

AEP vs. AWK: A comparison of their ROIC against their respective Regulated Electric and Regulated Water industry benchmarks.

Net Profit Margin

AEP

13.71%

Regulated Electric Industry

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

AEP’s Net Profit Margin of 13.71% 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.

AEP vs. AWK: A comparison of their Net Profit Margin against their respective Regulated Electric and Regulated Water industry benchmarks.

Operating Profit Margin

AEP

21.90%

Regulated Electric Industry

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

AEP’s Operating Profit Margin of 21.90% 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.

AEP vs. AWK: A comparison of their Operating Margin against their respective Regulated Electric and Regulated Water industry benchmarks.

Profitability at a Glance

Symbol	AEP	AWK
Return on Equity (TTM)	10.33%	10.35%
Return on Assets (TTM)	2.65%	3.23%
Return on Invested Capital (TTM)	4.16%	4.28%
Net Profit Margin (TTM)	13.71%	22.24%
Operating Profit Margin (TTM)	21.90%	36.59%
Gross Profit Margin (TTM)	62.60%	56.18%

Financial Strength

Current Ratio

AEP

0.42

Regulated Electric Industry

Max: 1.48
Q3: 1.06
Median: 0.86
Q1: 0.73
Min: 0.28

AEP’s Current Ratio of 0.42 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.

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.

AEP vs. AWK: A comparison of their Current Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Debt-to-Equity Ratio

AEP

1.72

Regulated Electric Industry

Max: 2.38
Q3: 1.97
Median: 1.65
Q1: 1.28
Min: 0.27

AEP’s Debt-to-Equity Ratio of 1.72 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.

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.

AEP vs. AWK: A comparison of their D/E Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Interest Coverage Ratio

AEP

2.30

Regulated Electric Industry

Max: 3.07
Q3: 2.63
Median: 2.41
Q1: 2.30
Min: 1.87

In the lower quartile for the Regulated Electric industry, AEP’s Interest Coverage Ratio of 2.30 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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.

AEP vs. AWK: A comparison of their Interest Coverage against their respective Regulated Electric and Regulated Water industry benchmarks.

Financial Strength at a Glance

Symbol	AEP	AWK
Current Ratio (TTM)	0.42	0.49
Quick Ratio (TTM)	0.31	0.44
Debt-to-Equity Ratio (TTM)	1.72	1.38
Debt-to-Asset Ratio (TTM)	0.45	0.44
Net Debt-to-EBITDA Ratio (TTM)	6.42	5.31
Interest Coverage Ratio (TTM)	2.30	3.24

Growth

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

Revenue Growth

AEP vs. AWK: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AEP vs. AWK: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AEP

3.53%

Regulated Electric Industry

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

AEP’s Dividend Yield of 3.53% is consistent with its peers in the Regulated Electric industry, providing a dividend return that is standard for its sector.

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.

AEP vs. AWK: A comparison of their Dividend Yield against their respective Regulated Electric and Regulated Water industry benchmarks.

Dividend Payout Ratio

AEP

70.11%

Regulated Electric Industry

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

AEP’s Dividend Payout Ratio of 70.11% is in the upper quartile for the Regulated Electric industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

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.

AEP vs. AWK: A comparison of their Payout Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Dividend at a Glance

Symbol	AEP	AWK
Dividend Yield (TTM)	3.53%	2.23%
Dividend Payout Ratio (TTM)	70.11%	55.65%

Valuation

Price-to-Earnings Ratio

AEP

20.04

Regulated Electric Industry

Max: 26.46
Q3: 21.71
Median: 19.07
Q1: 17.74
Min: 12.74

AEP’s P/E Ratio of 20.04 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.

AEP vs. AWK: A comparison of their P/E Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Forward P/E to Growth Ratio

AEP

2.79

Regulated Electric Industry

Max: 4.21
Q3: 3.10
Median: 2.78
Q1: 2.34
Min: 1.46

AEP’s Forward PEG Ratio of 2.79 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.

AEP vs. AWK: A comparison of their Forward PEG Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Price-to-Sales Ratio

AEP

2.75

Regulated Electric Industry

Max: 3.88
Q3: 3.19
Median: 2.68
Q1: 1.96
Min: 0.27

AEP’s P/S Ratio of 2.75 aligns with the market consensus for the Regulated Electric industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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.

AEP vs. AWK: A comparison of their P/S Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Price-to-Book Ratio

AEP

2.03

Regulated Electric Industry

Max: 2.95
Q3: 2.37
Median: 1.89
Q1: 1.43
Min: 0.55

AEP’s P/B Ratio of 2.03 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.

AEP vs. AWK: A comparison of their P/B Ratio against their respective Regulated Electric and Regulated Water industry benchmarks.

Valuation at a Glance

Symbol	AEP	AWK
Price-to-Earnings Ratio (P/E, TTM)	20.04	25.50
Forward PEG Ratio (TTM)	2.79	3.73
Price-to-Sales Ratio (P/S, TTM)	2.75	5.67
Price-to-Book Ratio (P/B, TTM)	2.03	2.59
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	-42.71	-31.04
EV-to-EBITDA (TTM)	14.06	15.39
EV-to-Sales (TTM)	5.07	8.66