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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.

Company profile comparison for American Electric Power (AEP) and Essential Utilities (WTRG)
Profile ItemAEPWTRG
NameAmerican Electric Power Company, Inc.Essential Utilities Inc.
Country/RegionUnited StatesUnited States
GICS SectorUtilitiesUtilities
GICS Industry GroupUtilitiesUtilities
GICS IndustryElectric UtilitiesWater Utilities
GICS Sub-IndustryElectric UtilitiesWater Utilities
Market Capitalization68.90 billion USD13.02 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AEP
WTRG
GSPC
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American Electric Power (AEP) vs. Essential Utilities (WTRG), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Electric Power (AEP) and Essential Utilities (WTRG). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for American Electric Power (AEP) and Essential Utilities (WTRG). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
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

AEP
WTRG
GSPC
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American Electric Power (AEP) vs. Essential Utilities (WTRG), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for American Electric Power (AEP) and Essential Utilities (WTRG). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
Volatility (1Y, Annualized)18.45%22.14%
Beta (5Y)0.460.61
Max Drawdown (5Y)-29.56%-36.53%
Avg. Volume (3M)3.64M2.38M

Risk-Adjusted Performance

Risk-Return Positioning

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AEP and WTRG are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
Sharpe Ratio (1Y)0.230.67
Sortino Ratio (1Y)0.331.08

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%
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their ROE against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their net margin against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their operating margin against the Utilities industry group benchmark.

Profitability Metrics

Profitability metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
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.

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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their Revenue Growth across different time periods.

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.

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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
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
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their current ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their debt-to-equity ratio against the Utilities industry group benchmark.

Financial Strength Metrics

Financial strength metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
Current Ratio (MRQ)0.510.40
Debt / Equity (MRQ)1.621.23
Net Debt / EBITDA5.766.30

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%
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their dividend yield against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their payout ratio against the Utilities industry group benchmark.

Dividend Metrics

Dividend metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
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
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their P/E ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their P/S ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. Essential Utilities (WTRG): A comparison of their P/B ratio against the Utilities industry group benchmark.

Valuation Metrics

Valuation metrics for American Electric Power (AEP) and Essential Utilities (WTRG)
MetricAEPWTRG
P/E Ratio (TTM)20.6722.73
P/S Ratio (TTM)2.925.01
P/B Ratio (MRQ)2.101.83
Free Cash Flow Yield (TTM)-11.28%-5.45%