AEP vs. SREA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AEP and SREA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AEP’s market capitalization stands at 55.48 billion USD, while SREA’s is 48.80 billion USD, indicating their market valuations are broadly comparable.
SREA carries a higher beta at 0.64, indicating it’s more sensitive to market moves, while AEP (beta: 0.41) exhibits greater stability.
| Symbol | AEP | SREA |
|---|---|---|
| Company Name | American Electric Power Company, Inc. | Sempra Energy |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Electric | Regulated Electric |
| CEO | William J. Fehrman | None |
| Price | 103.86 USD | 21.16 USD |
| Market Cap | 55.48 billion USD | 48.80 billion USD |
| Beta | 0.41 | 0.64 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 2, 1962 | June 27, 2019 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AEP and SREA 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.
SREA
9.72%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
SREA’s Return on Equity of 9.72% 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.
SREA
3.07%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
SREA’s Return on Invested Capital of 3.07% is in the lower quartile for the Regulated Electric industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
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.
SREA
22.24%
Regulated Electric Industry
- Max
- 22.24%
- Q3
- 15.98%
- Median
- 13.10%
- Q1
- 11.03%
- Min
- 3.79%
A Net Profit Margin of 22.24% places SREA in the upper quartile for the Regulated Electric industry, signifying strong profitability and more effective cost management than most of its peers.
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.
SREA
22.65%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
SREA’s Operating Profit Margin of 22.65% is around the midpoint for the Regulated Electric industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AEP | SREA |
|---|---|---|
| Return on Equity (TTM) | 10.33% | 9.72% |
| Return on Assets (TTM) | 2.65% | 3.00% |
| Return on Invested Capital (TTM) | 4.16% | 3.07% |
| Net Profit Margin (TTM) | 13.71% | 22.24% |
| Operating Profit Margin (TTM) | 21.90% | 22.65% |
| Gross Profit Margin (TTM) | 62.60% | 42.14% |
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.
SREA
0.57
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
SREA’s Current Ratio of 0.57 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.
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.
SREA
1.19
Regulated Electric Industry
- Max
- 2.38
- Q3
- 1.97
- Median
- 1.65
- Q1
- 1.28
- Min
- 0.27
Falling into the lower quartile for the Regulated Electric industry, SREA’s Debt-to-Equity Ratio of 1.19 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
SREA
2.57
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
SREA’s Interest Coverage Ratio of 2.57 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 | SREA |
|---|---|---|
| Current Ratio (TTM) | 0.42 | 0.57 |
| Quick Ratio (TTM) | 0.31 | 0.51 |
| Debt-to-Equity Ratio (TTM) | 1.72 | 1.19 |
| Debt-to-Asset Ratio (TTM) | 0.45 | 0.38 |
| Net Debt-to-EBITDA Ratio (TTM) | 6.42 | 6.02 |
| Interest Coverage Ratio (TTM) | 2.30 | 2.57 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AEP and SREA. 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.
SREA
3.37%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
SREA’s Dividend Yield of 3.37% 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.
SREA
52.58%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
SREA’s Dividend Payout Ratio of 52.58% is in the lower quartile for the Regulated Electric industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | AEP | SREA |
|---|---|---|
| Dividend Yield (TTM) | 3.53% | 3.37% |
| Dividend Payout Ratio (TTM) | 70.11% | 52.58% |
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.
SREA
16.50
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
In the lower quartile for the Regulated Electric industry, SREA’s P/E Ratio of 16.50 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
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.
SREA
1.89
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
In the lower quartile for the Regulated Electric industry, SREA’s Forward PEG Ratio of 1.89 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
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.
SREA
3.67
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
SREA’s P/S Ratio of 3.67 is in the upper echelon for the Regulated Electric 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.
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.
SREA
1.55
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
SREA’s P/B Ratio of 1.55 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 | SREA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.04 | 16.50 |
| Forward PEG Ratio (TTM) | 2.79 | 1.89 |
| Price-to-Sales Ratio (P/S, TTM) | 2.75 | 3.67 |
| Price-to-Book Ratio (P/B, TTM) | 2.03 | 1.55 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -42.71 | -12.01 |
| EV-to-EBITDA (TTM) | 14.06 | 14.22 |
| EV-to-Sales (TTM) | 5.07 | 6.37 |