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

Updated

Here’s a clear look at AEP and ED, 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

With AEP at 54.98 billion USD and ED at 37.91 billion USD, their market capitalizations sit in the same ballpark.

AEP’s beta of 0.43 points to much larger expected swings compared to ED’s calmer 0.28, suggesting both higher upside and downside potential.

SymbolAEPED
Company NameAmerican Electric Power Company, Inc.Consolidated Edison, Inc.
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricRegulated Electric
CEOMr. William J. FehrmanMr. Timothy P. Cawley
Price102.93 USD105.22 USD
Market Cap54.98 billion USD37.91 billion USD
Beta0.430.28
ExchangeNASDAQNYSE
IPO DateJanuary 2, 1962February 15, 2001
ADRNoNo

Performance Comparison

This chart compares the performance of AEP and ED 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 ED based on earnings, cash flow, sales, and book value. Pay attention to the following notable points where extreme values stand out.

  • AEP and ED both consumed more free cash flow than they generated last year—P/FCF of -42.33 and -46.75, respectively—highlighting persistent liquidity pressure.
SymbolAEPED
Price-to-Earnings Ratio (P/E, TTM)19.8619.48
Forward PEG Ratio (TTM)2.923.32
Price-to-Sales Ratio (P/S, TTM)2.732.40
Price-to-Book Ratio (P/B, TTM)2.010.00
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-42.33-46.75
EV-to-EBITDA (TTM)13.9911.33
EV-to-Sales (TTM)5.044.06
EV-to-Free Cash Flow (TTM)-78.25-79.07

Dividend Comparison

Both AEP and ED offer similar dividend yields (3.57% vs. 3.19%), indicating comparable approaches to balancing income and growth.

SymbolAEPED
Dividend Yield (TTM)3.57%3.19%

Financial Strength Metrics Comparison

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

  • With current ratios of 0.42 and 0.00, both AEP and ED have less current assets than short-term liabilities, which could strain their working capital and force reliance on additional financing.
  • Both AEP (quick ratio 0.31) and ED (quick ratio 0.00) fall below 0.8, meaning their most liquid assets—excluding inventory—aren’t enough to meet short-term obligations. This could force them to rely on receivables, inventory turn, or external financing.
SymbolAEPED
Current Ratio (TTM)0.420.00
Quick Ratio (TTM)0.310.00
Debt-to-Equity Ratio (TTM)1.720.00
Debt-to-Assets Ratio (TTM)0.450.00
Interest Coverage Ratio (TTM)2.302.30