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

Updated

Here’s a clear look at AEP and ETR, 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 ETR’s 35.57 billion USD by roughly 1.55×.

With betas of 0.43 for AEP and 0.60 for ETR, both show similar volatility profiles relative to the overall market.

SymbolAEPETR
Company NameAmerican Electric Power Company, Inc.Entergy Corporation
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated ElectricRegulated Electric
CEOMr. William J. FehrmanMr. Andrew S. Marsh
Price102.93 USD82.57 USD
Market Cap54.98 billion USD35.57 billion USD
Beta0.430.60
ExchangeNASDAQNYSE
IPO DateJanuary 2, 1962June 1, 1972
ADRNoNo

Performance Comparison

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

  • AEP and ETR both consumed more free cash flow than they generated last year—P/FCF of -42.33 and -18.67, respectively—highlighting persistent liquidity pressure.
SymbolAEPETR
Price-to-Earnings Ratio (P/E, TTM)19.8626.43
Forward PEG Ratio (TTM)2.922.53
Price-to-Sales Ratio (P/S, TTM)2.732.98
Price-to-Book Ratio (P/B, TTM)2.012.34
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-42.33-18.67
EV-to-EBITDA (TTM)13.9911.84
EV-to-Sales (TTM)5.045.45
EV-to-Free Cash Flow (TTM)-78.25-34.11

Dividend Comparison

Both AEP and ETR offer similar dividend yields (3.57% vs. 3.59%), indicating comparable approaches to balancing income and growth.

SymbolAEPETR
Dividend Yield (TTM)3.57%3.59%

Financial Strength Metrics Comparison

This section dives into the financial resilience of AEP and ETR, 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 0.82, both AEP and ETR 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 ETR (quick ratio 0.55) 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.
SymbolAEPETR
Current Ratio (TTM)0.420.82
Quick Ratio (TTM)0.310.55
Debt-to-Equity Ratio (TTM)1.722.04
Debt-to-Assets Ratio (TTM)0.450.46
Interest Coverage Ratio (TTM)2.302.52