AEP vs. NRG: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AEP and NRG, 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 NRG’s 30.40 billion USD by roughly 1.81×.
NRG carries a higher beta at 1.00, indicating it’s more sensitive to market moves, while AEP remains steadier at 0.43.
| Symbol | AEP | NRG |
|---|---|---|
| Company Name | American Electric Power Company, Inc. | NRG Energy, Inc. |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Independent Power Producers |
| CEO | Mr. William J. Fehrman | Dr. Lawrence Stephen Coben Ph.D. |
| Price | 102.93 USD | 155.47 USD |
| Market Cap | 54.98 billion USD | 30.40 billion USD |
| Beta | 0.43 | 1.00 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 2, 1962 | December 2, 2003 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AEP and NRG 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 NRG 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, NRG (P/FCF 13.43) indicates positive free cash flow generation.
| Symbol | AEP | NRG |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 19.86 | 22.57 |
| Forward PEG Ratio (TTM) | 2.92 | 1.99 |
| Price-to-Sales Ratio (P/S, TTM) | 2.73 | 1.04 |
| Price-to-Book Ratio (P/B, TTM) | 2.01 | 11.09 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -42.33 | 13.43 |
| EV-to-EBITDA (TTM) | 13.99 | 10.99 |
| EV-to-Sales (TTM) | 5.04 | 1.39 |
| EV-to-Free Cash Flow (TTM) | -78.25 | 17.98 |
Dividend Comparison
AEP’s dividend yield of 3.57% is about 227% higher than NRG’s 1.09%, underscoring its stronger focus on returning cash to shareholders.
| Symbol | AEP | NRG |
|---|---|---|
| Dividend Yield (TTM) | 3.57% | 1.09% |
Financial Strength Metrics Comparison
This section dives into the financial resilience of AEP and NRG, spotlighting key metrics like liquidity, leverage, and debt coverage. Check out the standout observations below where notable differences or extremes pop up.
- AEP’s current ratio of 0.42 signals a possible liquidity squeeze, while NRG at 1.06 comfortably covers its short-term obligations.
- AEP’s quick ratio of 0.31 suggests it may struggle to cover immediate liabilities without selling inventory or raising cash, whereas NRG at 1.02 maintains a comfortable buffer of liquid assets.
- NRG is highly leveraged (debt-to-equity ratio 3.96), elevating both potential gains and risks, compared to AEP at 1.72, which maintains a steadier capital structure.
| Symbol | AEP | NRG |
|---|---|---|
| Current Ratio (TTM) | 0.42 | 1.06 |
| Quick Ratio (TTM) | 0.31 | 1.02 |
| Debt-to-Equity Ratio (TTM) | 1.72 | 3.96 |
| Debt-to-Assets Ratio (TTM) | 0.45 | 0.44 |
| Interest Coverage Ratio (TTM) | 2.30 | 4.38 |