AEP vs. ETR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AEP and ETR, 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 ETR’s 35.29 billion USD, indicating a significant difference in their market valuations.
With betas of 0.41 for AEP and 0.58 for ETR, both stocks show similar sensitivity to overall market movements.
| Symbol | AEP | ETR |
|---|---|---|
| Company Name | American Electric Power Company, Inc. | Entergy Corporation |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Regulated Electric |
| CEO | William J. Fehrman | Andrew S. Marsh |
| Price | 103.86 USD | 81.92 USD |
| Market Cap | 55.48 billion USD | 35.29 billion USD |
| Beta | 0.41 | 0.58 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 2, 1962 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AEP and ETR 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.
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.
ETR
8.98%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
ETR’s Return on Equity of 8.98% is on par with the norm for the Regulated Electric industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
ETR
3.62%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
ETR’s Return on Invested Capital of 3.62% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
ETR
11.27%
Regulated Electric Industry
- Max
- 22.24%
- Q3
- 15.98%
- Median
- 13.10%
- Q1
- 11.03%
- Min
- 3.79%
ETR’s Net Profit Margin of 11.27% 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.
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.
ETR
25.67%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
An Operating Profit Margin of 25.67% places ETR in the upper quartile for the Regulated Electric industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AEP | ETR |
|---|---|---|
| Return on Equity (TTM) | 10.33% | 8.98% |
| Return on Assets (TTM) | 2.65% | 2.02% |
| Return on Invested Capital (TTM) | 4.16% | 3.62% |
| Net Profit Margin (TTM) | 13.71% | 11.27% |
| Operating Profit Margin (TTM) | 21.90% | 25.67% |
| Gross Profit Margin (TTM) | 62.60% | 44.88% |
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.
ETR
0.82
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
ETR’s Current Ratio of 0.82 aligns with the median group of the Regulated Electric industry, indicating that its short-term liquidity is in line with its sector peers.
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.
ETR
2.04
Regulated Electric Industry
- Max
- 2.38
- Q3
- 1.97
- Median
- 1.65
- Q1
- 1.28
- Min
- 0.27
ETR’s leverage is in the upper quartile of the Regulated Electric industry, with a Debt-to-Equity Ratio of 2.04. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
ETR
2.52
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
ETR’s Interest Coverage Ratio of 2.52 is positioned comfortably within the norm for the Regulated Electric industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AEP | ETR |
|---|---|---|
| Current Ratio (TTM) | 0.42 | 0.82 |
| Quick Ratio (TTM) | 0.31 | 0.55 |
| Debt-to-Equity Ratio (TTM) | 1.72 | 2.04 |
| Debt-to-Asset Ratio (TTM) | 0.45 | 0.46 |
| Net Debt-to-EBITDA Ratio (TTM) | 6.42 | 5.36 |
| Interest Coverage Ratio (TTM) | 2.30 | 2.52 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AEP and ETR. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
ETR
3.62%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
ETR’s Dividend Yield of 3.62% is consistent with its peers in the Regulated Electric industry, providing a dividend return that is standard for its sector.
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.
ETR
75.65%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
ETR’s Dividend Payout Ratio of 75.65% 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.
Dividend at a Glance
| Symbol | AEP | ETR |
|---|---|---|
| Dividend Yield (TTM) | 3.53% | 3.62% |
| Dividend Payout Ratio (TTM) | 70.11% | 75.65% |
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.
ETR
26.22
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
A P/E Ratio of 26.22 places ETR in the upper quartile for the Regulated Electric industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
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.
ETR
2.47
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
ETR’s Forward PEG Ratio of 2.47 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.
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.
ETR
2.96
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
ETR’s P/S Ratio of 2.96 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.
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.
ETR
2.32
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
ETR’s P/B Ratio of 2.32 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.
Valuation at a Glance
| Symbol | AEP | ETR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.04 | 26.22 |
| Forward PEG Ratio (TTM) | 2.79 | 2.47 |
| Price-to-Sales Ratio (P/S, TTM) | 2.75 | 2.96 |
| Price-to-Book Ratio (P/B, TTM) | 2.03 | 2.32 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -42.71 | -18.52 |
| EV-to-EBITDA (TTM) | 14.06 | 11.79 |
| EV-to-Sales (TTM) | 5.07 | 5.42 |