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

Updated

Here’s a clear look at AEP and CEG, comparing key factors like performance, valuation metrics, dividends, and financial strength. It’s built for investors or anyone curious to see how these two stocks match up.

Company Overview

CEG stands out with 89.99 billion USD in market value—about 1.64× AEP’s market cap of 54.98 billion USD.

CEG carries a higher beta at 1.01, indicating it’s more sensitive to market moves, while AEP remains steadier at 0.43.

SymbolAEPCEG
Company NameAmerican Electric Power Company, Inc.Constellation Energy Corporation
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricRenewable Utilities
CEOMr. William J. FehrmanMr. Joseph Dominguez
Price102.93 USD287.11 USD
Market Cap54.98 billion USD89.99 billion USD
Beta0.431.01
ExchangeNASDAQNASDAQ
IPO DateJanuary 2, 1962January 19, 2022
ADRNoNo

Performance Comparison

This chart compares the performance of AEP and CEG over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).

Hover over the lines to see the investment’s value and total return (%) at specific dates.

Data is adjusted for dividends and splits.

Valuation Metrics Comparison

The section examines key financial ratios to assess the valuation of AEP and CEG based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AEP and CEG both consumed more free cash flow than they generated last year—P/FCF of -42.33 and -21.09, respectively—highlighting persistent liquidity pressure.
SymbolAEPCEG
Price-to-Earnings Ratio (P/E, TTM)19.8630.12
Forward PEG Ratio (TTM)2.922.29
Price-to-Sales Ratio (P/S, TTM)2.733.71
Price-to-Book Ratio (P/B, TTM)2.016.94
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-42.33-21.09
EV-to-EBITDA (TTM)13.9914.95
EV-to-Sales (TTM)5.043.98
EV-to-Free Cash Flow (TTM)-78.25-22.61

Dividend Comparison

AEP’s dividend yield of 3.57% is about 458% higher than CEG’s 0.64%, underscoring its stronger focus on returning cash to shareholders.

SymbolAEPCEG
Dividend Yield (TTM)3.57%0.64%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AEP and CEG, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.

  • AEP’s current ratio of 0.42 signals a possible liquidity squeeze, while CEG at 1.47 comfortably covers its short-term obligations.
  • AEP’s quick ratio of 0.31 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas CEG at 1.24 maintains a comfortable buffer of liquid assets.
SymbolAEPCEG
Current Ratio (TTM)0.421.47
Quick Ratio (TTM)0.311.24
Debt-to-Equity Ratio (TTM)1.720.65
Debt-to-Assets Ratio (TTM)0.450.16
Interest Coverage Ratio (TTM)2.308.35