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

Here’s a clear look at AEP and NGG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAEPNGG
Company NameAmerican Electric Power Company, Inc.National Grid plc
CountryUnited StatesUnited Kingdom
GICS SectorUtilitiesUtilities
GICS Industry GroupUtilitiesUtilities
GICS IndustryElectric UtilitiesMulti-Utilities
GICS Sub-IndustryElectric UtilitiesMulti-Utilities
Market Capitalization71.11 billion USD86.73 billion USD
CurrencyUSDUSD
ExchangeNasdaqGSNYSE
Listing DateJanuary 2, 1962August 10, 2005
Security TypeCommon StockADR

AEP is a standard domestic listing, while NGG trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

AEP’s market capitalization stands at 71.11 billion USD, while NGG’s is 86.73 billion USD, indicating their market valuations are broadly comparable.

NGG is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AEP, on the other hand, is a domestic entity.

Historical Performance

This chart compares the performance of AEP and NGG 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
NGG
Loading price history…
AEP vs. NGG: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolAEPNGG
5-Day Price Return-4.63%-1.10%
13-Week Price Return8.20%-0.31%
26-Week Price Return8.99%12.65%
52-Week Price Return24.86%24.74%
Month-to-Date Return-4.68%-2.61%
Year-to-Date Return13.35%11.96%
10-Day Avg. Volume3.19M9.32M
3-Month Avg. Volume3.31M7.64M
3-Month Volatility19.66%24.05%
Beta0.550.89

NGG carries a higher beta at 0.89, indicating it’s more sensitive to market moves, while AEP (beta: 0.55) exhibits greater stability.

Profitability

Return on Equity (TTM)

AEP

12.04%

Electric Utilities Industry
Max
16.78%
Q3
12.22%
Median
9.88%
Q1
8.29%
Min
2.48%

AEP’s Return on Equity of 12.04% is on par with the norm for the Electric Utilities industry, indicating its profitability relative to shareholder equity is typical for the sector.

NGG

7.66%

Multi-Utilities Industry
Max
13.38%
Q3
11.57%
Median
10.23%
Q1
8.14%
Min
5.82%

NGG’s Return on Equity of 7.66% is in the lower quartile for the Multi-Utilities industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

AEP vs. NGG: A comparison of their Return on Equity (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Net Profit Margin (TTM)

AEP

16.77%

Electric Utilities Industry
Max
24.34%
Q3
16.77%
Median
13.76%
Q1
9.08%
Min
1.00%

AEP’s Net Profit Margin of 16.77% is aligned with the median group of its peers in the Electric Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.

NGG

22.58%

Multi-Utilities Industry
Max
22.58%
Q3
16.48%
Median
13.17%
Q1
9.66%
Min
3.33%

A Net Profit Margin of 22.58% places NGG in the upper quartile for the Multi-Utilities industry, signifying strong profitability and more effective cost management than most of its peers.

AEP vs. NGG: A comparison of their Net Profit Margin (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Operating Profit Margin (TTM)

AEP

24.91%

Electric Utilities Industry
Max
38.77%
Q3
25.23%
Median
21.36%
Q1
14.23%
Min
0.20%

AEP’s Operating Profit Margin of 24.91% is around the midpoint for the Electric Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.

NGG

40.12%

Multi-Utilities Industry
Max
28.14%
Q3
25.53%
Median
23.12%
Q1
18.56%
Min
12.00%

NGG’s Operating Profit Margin of 40.12% is exceptionally high, placing it well above the typical range for the Multi-Utilities industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

AEP vs. NGG: A comparison of their Operating Profit Margin (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Profitability at a Glance

SymbolAEPNGG
Return on Equity (TTM)12.04%7.66%
Return on Assets (TTM)3.28%2.73%
Net Profit Margin (TTM)16.77%22.58%
Operating Profit Margin (TTM)24.91%40.12%
Gross Profit Margin (TTM)41.85%--

Financial Strength

Current Ratio (MRQ)

AEP

0.45

Electric Utilities Industry
Max
1.91
Q3
1.17
Median
0.77
Q1
0.59
Min
0.45

AEP’s Current Ratio of 0.45 falls into the lower quartile for the Electric Utilities industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

NGG

0.97

Multi-Utilities Industry
Max
1.35
Q3
1.00
Median
0.83
Q1
0.73
Min
0.56

NGG’s Current Ratio of 0.97 aligns with the median group of the Multi-Utilities industry, indicating that its short-term liquidity is in line with its sector peers.

AEP vs. NGG: A comparison of their Current Ratio (MRQ) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AEP

1.57

Electric Utilities Industry
Max
2.76
Q3
1.84
Median
1.58
Q1
1.11
Min
0.04

AEP’s Debt-to-Equity Ratio of 1.57 is typical for the Electric Utilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

NGG

1.23

Multi-Utilities Industry
Max
2.17
Q3
1.89
Median
1.52
Q1
1.23
Min
1.11

NGG’s Debt-to-Equity Ratio of 1.23 is typical for the Multi-Utilities industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AEP vs. NGG: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Interest Coverage Ratio (TTM)

AEP

3.09

Electric Utilities Industry
Max
5.72
Q3
3.81
Median
2.74
Q1
2.51
Min
1.97

AEP’s Interest Coverage Ratio of 3.09 is positioned comfortably within the norm for the Electric Utilities industry, indicating a standard and healthy capacity to cover its interest payments.

NGG

4.29

Multi-Utilities Industry
Max
4.42
Q3
3.47
Median
2.78
Q1
2.56
Min
1.82

NGG’s Interest Coverage Ratio of 4.29 is in the upper quartile for the Multi-Utilities industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AEP vs. NGG: A comparison of their Interest Coverage Ratio (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Financial Strength at a Glance

SymbolAEPNGG
Current Ratio (MRQ)0.450.97
Quick Ratio (MRQ)0.320.90
Debt-to-Equity Ratio (MRQ)1.571.23
Interest Coverage Ratio (TTM)3.094.29

Growth

Revenue Growth

AEP vs. NGG: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolAEPNGG
Revenue Growth (MRQ vs Prior YoY)13.31%-31.45%
Revenue Growth (TTM vs Prior YoY)10.98%65.31%
3-Year Revenue CAGR3.55%38.40%
5-Year Revenue CAGR7.88%31.89%

EPS Growth

AEP vs. NGG: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolAEPNGG
EPS Growth (MRQ vs Prior YoY)-13.47%-12.87%
EPS Growth (TTM vs Prior YoY)19.33%28.15%
3-Year EPS CAGR13.99%4.20%
5-Year EPS CAGR8.52%15.16%

Dividend

Dividend Yield (TTM)

AEP

2.82%

Electric Utilities Industry
Max
5.08%
Q3
3.46%
Median
2.73%
Q1
2.12%
Min
0.45%

AEP’s Dividend Yield of 2.82% is consistent with its peers in the Electric Utilities industry, providing a dividend return that is standard for its sector.

NGG

2.54%

Multi-Utilities Industry
Max
4.16%
Q3
3.37%
Median
3.02%
Q1
2.62%
Min
2.10%

NGG’s Dividend Yield of 2.54% is in the lower quartile for the Multi-Utilities industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AEP vs. NGG: A comparison of their Dividend Yield (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Dividend Payout Ratio (TTM)

AEP

56.09%

Electric Utilities Industry
Max
91.63%
Q3
66.08%
Median
57.96%
Q1
30.39%
Min
0.00%

AEP’s Dividend Payout Ratio of 56.09% is within the typical range for the Electric Utilities industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

NGG

56.13%

Multi-Utilities Industry
Max
89.44%
Q3
75.06%
Median
61.90%
Q1
56.60%
Min
44.95%

NGG’s Dividend Payout Ratio of 56.13% is in the lower quartile for the Multi-Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AEP vs. NGG: A comparison of their Dividend Payout Ratio (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Dividend at a Glance

SymbolAEPNGG
Dividend Yield (TTM)2.82%2.54%
Dividend Payout Ratio (TTM)56.09%56.13%

Valuation

Price-to-Earnings Ratio (TTM)

AEP

19.86

Electric Utilities Industry
Max
33.72
Q3
24.15
Median
20.89
Q1
16.34
Min
5.77

AEP’s P/E Ratio of 19.86 is within the middle range for the Electric Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

NGG

22.13

Multi-Utilities Industry
Max
25.81
Q3
23.06
Median
21.17
Q1
18.96
Min
17.54

NGG’s P/E Ratio of 22.13 is within the middle range for the Multi-Utilities industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AEP vs. NGG: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Price-to-Sales Ratio (TTM)

AEP

3.33

Electric Utilities Industry
Max
7.13
Q3
3.99
Median
3.02
Q1
1.40
Min
0.30

AEP’s P/S Ratio of 3.33 aligns with the market consensus for the Electric Utilities industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

NGG

5.00

Multi-Utilities Industry
Max
5.12
Q3
3.58
Median
3.18
Q1
2.40
Min
0.74

NGG’s P/S Ratio of 5.00 is in the upper echelon for the Multi-Utilities industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

AEP vs. NGG: A comparison of their Price-to-Sales Ratio (TTM) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Price-to-Book Ratio (MRQ)

AEP

1.98

Electric Utilities Industry
Max
2.93
Q3
2.30
Median
1.79
Q1
1.51
Min
0.63

AEP’s P/B Ratio of 1.98 is within the conventional range for the Electric Utilities 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.

NGG

1.42

Multi-Utilities Industry
Max
3.81
Q3
2.41
Median
2.02
Q1
1.45
Min
1.16

NGG’s P/B Ratio of 1.42 is in the lower quartile for the Multi-Utilities industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

AEP vs. NGG: A comparison of their Price-to-Book Ratio (MRQ) against their respective Electric Utilities and Multi-Utilities industry benchmarks.

Valuation at a Glance

SymbolAEPNGG
Price-to-Earnings Ratio (TTM)19.8622.13
Price-to-Sales Ratio (TTM)3.335.00
Price-to-Book Ratio (MRQ)1.981.42
Price-to-Free Cash Flow Ratio (TTM)163.33859.02