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

Updated

Here’s a clear look at AEP and ES, 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

AEP dominates in value with a market cap of 54.98 billion USD, eclipsing ES’s 23.50 billion USD by roughly 2.34×.

With betas of 0.43 for AEP and 0.63 for ES, both show similar volatility profiles relative to the overall market.

SymbolAEPES
Company NameAmerican Electric Power Company, Inc.Eversource Energy
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricRegulated Electric
CEOMr. William J. FehrmanMr. Joseph R. Nolan Jr.
Price102.93 USD63.96 USD
Market Cap54.98 billion USD23.50 billion USD
Beta0.430.63
ExchangeNASDAQNYSE
IPO DateJanuary 2, 1962February 21, 1973
ADRNoNo

Performance Comparison

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

  • AEP has a negative Price-to-Free Cash Flow ratio of -42.33, signaling it consumed more cash than it produced over the last year—an important liquidity warning. In contrast, ES (P/FCF 0.02) indicates positive free cash flow generation.
SymbolAEPES
Price-to-Earnings Ratio (P/E, TTM)19.860.04
Forward PEG Ratio (TTM)2.920.01
Price-to-Sales Ratio (P/S, TTM)2.730.01
Price-to-Book Ratio (P/B, TTM)2.010.00
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-42.330.02
EV-to-EBITDA (TTM)13.9931.21
EV-to-Sales (TTM)5.047.03
EV-to-Free Cash Flow (TTM)-78.2527.91

Dividend Comparison

Both AEP and ES offer similar dividend yields (3.57% vs. 4.59%), indicating comparable approaches to balancing income and growth.

SymbolAEPES
Dividend Yield (TTM)3.57%4.59%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AEP and ES, 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 0.75, both AEP and ES 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 ES (quick ratio 0.66) 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.
SymbolAEPES
Current Ratio (TTM)0.420.75
Quick Ratio (TTM)0.310.66
Debt-to-Equity Ratio (TTM)1.721.32
Debt-to-Assets Ratio (TTM)0.450.48
Interest Coverage Ratio (TTM)2.303.08