AEP vs. WTRG: American Electric Power vs. Essential Utilities Stock Comparison
How do American Electric Power (AEP) and Essential Utilities (WTRG) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
American Electric Power (AEP) and Essential Utilities (WTRG) both fall under the Utilities industry group, but AEP is classified in Electric Utilities while WTRG is classified in Water Utilities.
| Profile Item | AEP | WTRG |
|---|---|---|
| Name | American Electric Power Company, Inc. | Essential Utilities Inc. |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Electric Utilities | Water Utilities |
| GICS Sub-Industry | Electric Utilities | Water Utilities |
| Market Capitalization | 68.90 billion USD | 13.02 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Total Return (1Y) | 8.60% | 19.07% |
| Total Return (3Y, Annualized) | 22.18% | 13.95% |
| Total Return (5Y, Annualized) | 12.81% | 2.39% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Volatility (1Y, Annualized) | 18.45% | 22.14% |
| Beta (5Y) | 0.46 | 0.61 |
| Max Drawdown (5Y) | -29.56% | -36.53% |
| Avg. Volume (3M) | 3.64M | 2.38M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Sharpe Ratio (1Y) | 0.23 | 0.67 |
| Sortino Ratio (1Y) | 0.33 | 1.08 |
Profitability
ROE (TTM)
Both American Electric Power (AEP) at 10.60% and Essential Utilities (WTRG) at 8.13% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
AEP
Utilities industry group
10.60%
- Max
- 17.99%
- Q3
- 12.01%
- AEP
- 10.60%
- Median
- 9.44%
- Q1
- 7.56%
- Min
- 2.17%
WTRG
Utilities industry group
8.13%
- Max
- 17.99%
- Q3
- 12.01%
- Median
- 9.44%
- WTRG
- 8.13%
- Q1
- 7.56%
- Min
- 2.17%
Net Margin (TTM)
Essential Utilities (WTRG) at 21.79% retains a top-quartile share of revenue as profit, ahead of American Electric Power (AEP) at 14.21%, which keeps about the industry-typical share.
AEP
Utilities industry group
14.21%
- Max
- 28.78%
- Q3
- 17.30%
- AEP
- 14.21%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
WTRG
Utilities industry group
21.79%
- Max
- 28.78%
- WTRG
- 21.79%
- Q3
- 17.30%
- Median
- 12.73%
- Q1
- 9.18%
- Min
- -0.20%
Operating Margin (TTM)
Essential Utilities (WTRG) at 38.94% operates in the top operating margin quartile, ahead of American Electric Power (AEP) at 26.89%, which runs around its industry’s norm.
AEP
Utilities industry group
26.89%
- Max
- 53.83%
- Q3
- 31.12%
- AEP
- 26.89%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
WTRG
Utilities industry group
38.94%
- Max
- 53.83%
- WTRG
- 38.94%
- Q3
- 31.12%
- Median
- 23.62%
- Q1
- 15.45%
- Min
- -4.90%
Profitability Metrics
| Metric | AEP | WTRG |
|---|---|---|
| ROE (TTM) | 10.60% | 8.13% |
| ROA (TTM) | 3.04% | 3.00% |
| Net Margin (TTM) | 14.21% | 21.79% |
| Operating Margin (TTM) | 26.89% | 38.94% |
| Gross Margin (TTM) | 46.62% | 57.07% |
Growth
Revenue Growth
Essential Utilities (WTRG) at 18.62% sits in the top revenue growth quartile, while American Electric Power (AEP) at 10.93% is closer to the peer norm — faster top-line expansion for WTRG.
EPS Growth
Both American Electric Power (AEP) at 19.35% and Essential Utilities (WTRG) at 1.38% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Revenue Growth (YoY) | 10.93% | 18.62% |
| Revenue Growth (3Y CAGR) | 3.66% | 2.65% |
| EPS Growth (YoY) | 19.35% | 1.38% |
| EPS Growth (3Y CAGR) | 14.04% | 7.52% |
Financial Strength
Current Ratio (MRQ)
Both American Electric Power (AEP) at 0.51 and Essential Utilities (WTRG) at 0.40 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
AEP
Utilities industry group
0.51
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- AEP
- 0.51
- Min
- 0.29
WTRG
Utilities industry group
0.40
- Max
- 1.90
- Q3
- 1.17
- Median
- 0.88
- Q1
- 0.66
- WTRG
- 0.40
- Min
- 0.29
Debt / Equity (MRQ)
Both American Electric Power (AEP) at 1.62 and Essential Utilities (WTRG) at 1.23 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
AEP
Utilities industry group
1.62
- Max
- 2.63
- Q3
- 1.77
- AEP
- 1.62
- Median
- 1.35
- Q1
- 0.84
- Min
- 0.00
WTRG
Utilities industry group
1.23
- Max
- 2.63
- Q3
- 1.77
- Median
- 1.35
- WTRG
- 1.23
- Q1
- 0.84
- Min
- 0.00
Financial Strength Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Current Ratio (MRQ) | 0.51 | 0.40 |
| Debt / Equity (MRQ) | 1.62 | 1.23 |
| Net Debt / EBITDA | 5.76 | 6.30 |
Dividends
Dividend Yield (TTM)
Both American Electric Power (AEP) at 3.00% and Essential Utilities (WTRG) at 3.01% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AEP
Utilities industry group
3.00%
- Max
- 6.66%
- Q3
- 3.58%
- AEP
- 3.00%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
WTRG
Utilities industry group
3.01%
- Max
- 6.66%
- Q3
- 3.58%
- WTRG
- 3.01%
- Median
- 2.85%
- Q1
- 0.66%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
American Electric Power (AEP) at 62.09% pays out a band-typical share of earnings, while Essential Utilities (WTRG) at 69.42% distributes more than its industry norm — less retained, thinner cover.
AEP
Utilities industry group
62.09%
- Max
- 113.04%
- Q3
- 68.72%
- AEP
- 62.09%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
WTRG
Utilities industry group
69.42%
- Max
- 113.04%
- WTRG
- 69.42%
- Q3
- 68.72%
- Median
- 56.38%
- Q1
- 32.38%
- Min
- 0.00%
Dividend Metrics
| Metric | AEP | WTRG |
|---|---|---|
| Dividend Yield (TTM) | 3.00% | 3.01% |
| Dividend Payout Ratio (TTM) | 62.09% | 69.42% |
Valuation
P/E Ratio (TTM)
Both American Electric Power (AEP) at 20.67 and Essential Utilities (WTRG) at 22.73 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
AEP
Utilities industry group
20.67
- Max
- 31.22
- Q3
- 23.30
- AEP
- 20.67
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
WTRG
Utilities industry group
22.73
- Max
- 31.22
- Q3
- 23.30
- WTRG
- 22.73
- Median
- 19.64
- Q1
- 15.17
- Min
- 3.34
P/S Ratio (TTM)
American Electric Power (AEP) at 2.92 is priced about in line with its industry on P/S ratio, while Essential Utilities (WTRG) at 5.01 sits in the pricier quartile — WTRG costs more per dollar of sales.
AEP
Utilities industry group
2.92
- Max
- 6.35
- Q3
- 3.63
- AEP
- 2.92
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
WTRG
Utilities industry group
5.01
- Max
- 6.35
- WTRG
- 5.01
- Q3
- 3.63
- Median
- 2.63
- Q1
- 1.52
- Min
- 0.00
P/B Ratio (MRQ)
On P/B ratio, both American Electric Power (AEP) at 2.10 and Essential Utilities (WTRG) at 1.83 are valued close to their industries’ norm against book — neither stands out from peers.
AEP
Utilities industry group
2.10
- Max
- 3.12
- Q3
- 2.21
- AEP
- 2.10
- Median
- 1.83
- Q1
- 1.46
- Min
- 0.34
WTRG
Utilities industry group
1.83
- Max
- 3.12
- Q3
- 2.21
- Median
- 1.83
- WTRG
- 1.83
- Q1
- 1.46
- Min
- 0.34
Valuation Metrics
| Metric | AEP | WTRG |
|---|---|---|
| P/E Ratio (TTM) | 20.67 | 22.73 |
| P/S Ratio (TTM) | 2.92 | 5.01 |
| P/B Ratio (MRQ) | 2.10 | 1.83 |
| Free Cash Flow Yield (TTM) | -11.28% | -5.45% |