AEP vs. SMR: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AEP and SMR, 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 SMR’s 10.66 billion USD, indicating a significant difference in their market valuations.
SMR carries a higher beta at 2.02, indicating it’s more sensitive to market moves, while AEP (beta: 0.41) exhibits greater stability.
| Symbol | AEP | SMR |
|---|---|---|
| Company Name | American Electric Power Company, Inc. | NuScale Power Corporation |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Renewable Utilities |
| CEO | William J. Fehrman | John Lawrence Hopkins |
| Price | 103.86 USD | 35.88 USD |
| Market Cap | 55.48 billion USD | 10.66 billion USD |
| Beta | 0.41 | 2.02 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 2, 1962 | March 1, 2022 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AEP and SMR 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.
SMR
-33.12%
Renewable Utilities Industry
- Max
- 23.82%
- Q3
- 7.92%
- Median
- 1.23%
- Q1
- -7.00%
- Min
- -25.19%
SMR has a negative Return on Equity of -33.12%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
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.
SMR
-21.18%
Renewable Utilities Industry
- Max
- 7.46%
- Q3
- 3.12%
- Median
- 1.32%
- Q1
- 0.06%
- Min
- -2.29%
SMR has a negative Return on Invested Capital of -21.18%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
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.
SMR
-273.35%
Renewable Utilities Industry
- Max
- 29.15%
- Q3
- 11.19%
- Median
- 3.47%
- Q1
- -3.48%
- Min
- -6.37%
SMR has a negative Net Profit Margin of -273.35%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
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.
SMR
-265.25%
Renewable Utilities Industry
- Max
- 67.88%
- Q3
- 52.14%
- Median
- 21.75%
- Q1
- 15.17%
- Min
- -0.74%
SMR has a negative Operating Profit Margin of -265.25%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
Profitability at a Glance
| Symbol | AEP | SMR |
|---|---|---|
| Return on Equity (TTM) | 10.33% | -33.12% |
| Return on Assets (TTM) | 2.65% | -21.69% |
| Return on Invested Capital (TTM) | 4.16% | -21.18% |
| Net Profit Margin (TTM) | 13.71% | -273.35% |
| Operating Profit Margin (TTM) | 21.90% | -265.25% |
| Gross Profit Margin (TTM) | 62.60% | 78.44% |
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.
SMR
6.23
Renewable Utilities Industry
- Max
- 1.52
- Q3
- 1.50
- Median
- 1.10
- Q1
- 0.60
- Min
- 0.22
SMR’s Current Ratio of 6.23 is exceptionally high, placing it well outside the typical range for the Renewable Utilities industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
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.
SMR
--
Renewable Utilities Industry
- Max
- 6.80
- Q3
- 3.61
- Median
- 1.43
- Q1
- 0.91
- Min
- 0.12
Debt-to-Equity Ratio data for SMR is currently unavailable.
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.
SMR
--
Renewable Utilities Industry
- Max
- 3.94
- Q3
- 2.59
- Median
- 1.19
- Q1
- 0.72
- Min
- -1.21
Interest Coverage Ratio data for SMR is currently unavailable.
Financial Strength at a Glance
| Symbol | AEP | SMR |
|---|---|---|
| Current Ratio (TTM) | 0.42 | 6.23 |
| Quick Ratio (TTM) | 0.31 | 6.23 |
| Debt-to-Equity Ratio (TTM) | 1.72 | -- |
| Debt-to-Asset Ratio (TTM) | 0.45 | -- |
| Net Debt-to-EBITDA Ratio (TTM) | 6.42 | 3.83 |
| Interest Coverage Ratio (TTM) | 2.30 | -- |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AEP and SMR. 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.
SMR
0.00%
Renewable Utilities Industry
- Max
- 5.69%
- Q3
- 3.50%
- Median
- 0.26%
- Q1
- 0.00%
- Min
- 0.00%
SMR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
SMR
0.00%
Renewable Utilities Industry
- Max
- 361.70%
- Q3
- 19.22%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
SMR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | AEP | SMR |
|---|---|---|
| Dividend Yield (TTM) | 3.53% | 0.00% |
| Dividend Payout Ratio (TTM) | 70.11% | 0.00% |
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.
SMR
-104.38
Renewable Utilities Industry
- Max
- 544.87
- Q3
- 236.37
- Median
- 40.47
- Q1
- 30.71
- Min
- 9.33
SMR has a negative P/E Ratio of -104.38. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
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.
SMR
7.83
Renewable Utilities Industry
- Max
- 8.78
- Q3
- 5.99
- Median
- 2.14
- Q1
- 0.33
- Min
- 0.19
A Forward PEG Ratio of 7.83 places SMR in the upper quartile for the Renewable Utilities industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
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.
SMR
483.87
Renewable Utilities Industry
- Max
- 6.47
- Q3
- 4.58
- Median
- 3.48
- Q1
- 2.45
- Min
- 0.34
With a P/S Ratio of 483.87, SMR trades at a valuation that eclipses even the highest in the Renewable Utilities industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
SMR
19.88
Renewable Utilities Industry
- Max
- 16.60
- Q3
- 8.87
- Median
- 2.07
- Q1
- 0.94
- Min
- 0.36
At 19.88, SMR’s P/B Ratio is at an extreme premium to the Renewable Utilities industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AEP | SMR |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.04 | -104.38 |
| Forward PEG Ratio (TTM) | 2.79 | 7.83 |
| Price-to-Sales Ratio (P/S, TTM) | 2.75 | 483.87 |
| Price-to-Book Ratio (P/B, TTM) | 2.03 | 19.88 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -42.71 | -241.96 |
| EV-to-EBITDA (TTM) | 14.06 | -180.90 |
| EV-to-Sales (TTM) | 5.07 | 473.85 |