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

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Here’s a clear look at AEP and CNP, 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 CNP’s 23.46 billion USD, indicating a significant difference in their market valuations.

With betas of 0.41 for AEP and 0.58 for CNP, both stocks show similar sensitivity to overall market movements.

SymbolAEPCNP
Company NameAmerican Electric Power Company, Inc.CenterPoint Energy, Inc.
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricGeneral Utilities
CEOWilliam J. FehrmanJason P. Wells CPA
Price103.86 USD35.94 USD
Market Cap55.48 billion USD23.46 billion USD
Beta0.410.58
ExchangeNASDAQNYSE
IPO DateJanuary 2, 1962January 2, 1970
ADRNoNo

Historical Performance

This chart compares the performance of AEP and CNP 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. CNP: 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.

CNP

9.09%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Return on Equity of 9.09%, but industry benchmarks for the General Utilities industry are currently unavailable for comparison.

AEP vs. CNP: A comparison of their ROE against their respective Regulated Electric and General Utilities 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.

CNP

4.01%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Return on Invested Capital of 4.01%, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their ROIC against their respective Regulated Electric and General Utilities 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.

CNP

10.80%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Net Profit Margin of 10.80%, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their Net Profit Margin against their respective Regulated Electric and General Utilities 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.

CNP

22.62%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has an Operating Profit Margin of 22.62%, but industry benchmarks for the General Utilities industry are currently unavailable for comparison.

AEP vs. CNP: A comparison of their Operating Margin against their respective Regulated Electric and General Utilities industry benchmarks.

Profitability at a Glance

SymbolAEPCNP
Return on Equity (TTM)10.33%9.09%
Return on Assets (TTM)2.65%2.17%
Return on Invested Capital (TTM)4.16%4.01%
Net Profit Margin (TTM)13.71%10.80%
Operating Profit Margin (TTM)21.90%22.62%
Gross Profit Margin (TTM)62.60%44.94%

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.

CNP

0.93

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Current Ratio of 0.93, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their Current Ratio against their respective Regulated Electric and General Utilities 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.

CNP

2.03

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Debt-to-Equity Ratio of 2.03, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their D/E Ratio against their respective Regulated Electric and General Utilities 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.

CNP

3.19

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has an Interest Coverage Ratio of 3.19, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their Interest Coverage against their respective Regulated Electric and General Utilities industry benchmarks.

Financial Strength at a Glance

SymbolAEPCNP
Current Ratio (TTM)0.420.93
Quick Ratio (TTM)0.310.79
Debt-to-Equity Ratio (TTM)1.722.03
Debt-to-Asset Ratio (TTM)0.450.50
Net Debt-to-EBITDA Ratio (TTM)6.425.97
Interest Coverage Ratio (TTM)2.303.19

Growth

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

Revenue Growth

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

Earnings Per Share (EPS) Growth

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

Free Cash Flow Growth

AEP vs. CNP: 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.

CNP

2.37%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Dividend Yield of 2.37%, but industry benchmarks for the General Utilities sector are currently unavailable for comparison.

AEP vs. CNP: A comparison of their Dividend Yield against their respective Regulated Electric and General Utilities 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.

CNP

55.80%

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Dividend Payout Ratio of 55.80%, but industry benchmark data for the General Utilities sector is unavailable for comparison.

AEP vs. CNP: A comparison of their Payout Ratio against their respective Regulated Electric and General Utilities industry benchmarks.

Dividend at a Glance

SymbolAEPCNP
Dividend Yield (TTM)3.53%2.37%
Dividend Payout Ratio (TTM)70.11%55.80%

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.

CNP

24.26

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a P/E Ratio of 24.26, but a direct industry comparison is not possible as benchmark data for the General Utilities sector is unavailable.

AEP vs. CNP: A comparison of their P/E Ratio against their respective Regulated Electric and General Utilities 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.

CNP

3.06

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a Forward PEG Ratio of 3.06, but industry benchmarks for the General Utilities sector are unavailable for comparison.

AEP vs. CNP: A comparison of their Forward PEG Ratio against their respective Regulated Electric and General Utilities 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.

CNP

2.62

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a P/S Ratio of 2.62, but a direct comparison is not possible as benchmarks for the General Utilities sector are unavailable.

AEP vs. CNP: A comparison of their P/S Ratio against their respective Regulated Electric and General Utilities 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.

CNP

2.14

General Utilities Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

CNP has a P/B Ratio of 2.14, but industry benchmarks for the General Utilities industry are currently unavailable for comparison.

AEP vs. CNP: A comparison of their P/B Ratio against their respective Regulated Electric and General Utilities industry benchmarks.

Valuation at a Glance

SymbolAEPCNP
Price-to-Earnings Ratio (P/E, TTM)20.0424.26
Forward PEG Ratio (TTM)2.793.06
Price-to-Sales Ratio (P/S, TTM)2.752.62
Price-to-Book Ratio (P/B, TTM)2.032.14
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-42.71-8.70
EV-to-EBITDA (TTM)14.0612.65
EV-to-Sales (TTM)5.074.96