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.
| Profile Item | AEP | AWK |
|---|---|---|
| Name | American Electric Power Company, Inc. | American Water Works Company, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Electric Utilities | Water Utilities |
| GICS Sub-Industry | Electric Utilities | Water Utilities |
| Market Capitalization | 68.90 billion USD | 29.92 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | April 23, 2008 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AEP | AWK |
|---|---|---|
| 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
Return Distribution
Risk Metrics
| Metric | AEP | AWK |
|---|---|---|
| Volatility (1Y, Annualized) | 18.45% | 22.53% |
| Beta (5Y) | 0.46 | 0.54 |
| Max Drawdown (5Y) | -29.56% | -37.10% |
| Avg. Volume (3M) | 3.64M | 2.03M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AEP | AWK |
|---|---|---|
| Sharpe Ratio (1Y) | 0.23 | 0.59 |
| Sortino Ratio (1Y) | 0.33 | 0.95 |
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%
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%
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%
Profitability Metrics
| Metric | AEP | AWK |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | AEP | AWK |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | AEP | AWK |
|---|---|---|
| Current Ratio (MRQ) | 0.51 | 0.39 |
| Debt / Equity (MRQ) | 1.62 | 1.38 |
| Net Debt / EBITDA | 5.76 | 5.49 |
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%
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%
Dividend Metrics
| Metric | AEP | AWK |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | AEP | AWK |
|---|---|---|
| P/E Ratio (TTM) | 20.67 | 26.00 |
| P/S Ratio (TTM) | 2.92 | 5.60 |
| P/B Ratio (MRQ) | 2.10 | 2.51 |
| Free Cash Flow Yield (TTM) | -11.28% | -5.45% |