AES vs. BIP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AES and BIP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BIP’s market capitalization of 15.72 billion USD is significantly greater than AES’s 8.20 billion USD, highlighting its more substantial market valuation.
With betas of 0.94 for AES and 1.06 for BIP, both stocks show similar sensitivity to overall market movements.
| Symbol | AES | BIP |
|---|---|---|
| Company Name | The AES Corporation | Brookfield Infrastructure Partners L.P. |
| Country | US | BM |
| Sector | Utilities | Utilities |
| Industry | Diversified Utilities | Diversified Utilities |
| CEO | Andres Ricardo Gluski Weilert | Samuel J. B. Pollock CPA |
| Price | 11.52 USD | 34.07 USD |
| Market Cap | 8.20 billion USD | 15.72 billion USD |
| Beta | 0.94 | 1.06 |
| Exchange | NYSE | NYSE |
| IPO Date | June 26, 1991 | January 10, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AES and BIP 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
AES
36.26%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
AES’s Return on Equity of 36.26% is exceptionally high, placing it well beyond the typical range for the Diversified Utilities industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
BIP
1.90%
Diversified Utilities Industry
- Max
- 17.95%
- Q3
- 11.52%
- Median
- 9.21%
- Q1
- 6.89%
- Min
- 1.90%
BIP’s Return on Equity of 1.90% is in the lower quartile for the Diversified Utilities industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
AES
3.83%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
AES’s Return on Invested Capital of 3.83% is in line with the norm for the Diversified Utilities industry, reflecting a standard level of efficiency in generating profits from its capital base.
BIP
4.05%
Diversified Utilities Industry
- Max
- 5.93%
- Q3
- 5.01%
- Median
- 4.05%
- Q1
- 3.29%
- Min
- 2.36%
BIP’s Return on Invested Capital of 4.05% is in line with the norm for the Diversified Utilities industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
AES
10.09%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
AES’s Net Profit Margin of 10.09% is aligned with the median group of its peers in the Diversified Utilities industry. This indicates its ability to convert revenue into profit is typical for the sector.
BIP
0.50%
Diversified Utilities Industry
- Max
- 22.37%
- Q3
- 17.08%
- Median
- 12.67%
- Q1
- 9.69%
- Min
- 0.50%
Falling into the lower quartile for the Diversified Utilities industry, BIP’s Net Profit Margin of 0.50% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
AES
15.19%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
AES’s Operating Profit Margin of 15.19% is around the midpoint for the Diversified Utilities industry, indicating that its efficiency in managing core business operations is typical for the sector.
BIP
24.06%
Diversified Utilities Industry
- Max
- 27.96%
- Q3
- 22.82%
- Median
- 19.04%
- Q1
- 13.03%
- Min
- 7.89%
An Operating Profit Margin of 24.06% places BIP in the upper quartile for the Diversified Utilities industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AES | BIP |
|---|---|---|
| Return on Equity (TTM) | 36.26% | 1.90% |
| Return on Assets (TTM) | 2.52% | 0.10% |
| Return on Invested Capital (TTM) | 3.83% | 4.05% |
| Net Profit Margin (TTM) | 10.09% | 0.50% |
| Operating Profit Margin (TTM) | 15.19% | 24.06% |
| Gross Profit Margin (TTM) | 17.62% | 25.97% |
Financial Strength
Current Ratio
AES
0.84
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
AES’s Current Ratio of 0.84 aligns with the median group of the Diversified Utilities industry, indicating that its short-term liquidity is in line with its sector peers.
BIP
0.77
Diversified Utilities Industry
- Max
- 2.07
- Q3
- 1.38
- Median
- 1.19
- Q1
- 0.81
- Min
- 0.57
BIP’s Current Ratio of 0.77 falls into the lower quartile for the Diversified Utilities 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
AES
8.82
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
With a Debt-to-Equity Ratio of 8.82, AES operates with exceptionally high leverage compared to the Diversified Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
BIP
10.14
Diversified Utilities Industry
- Max
- 1.54
- Q3
- 1.19
- Median
- 0.73
- Q1
- 0.63
- Min
- 0.23
With a Debt-to-Equity Ratio of 10.14, BIP operates with exceptionally high leverage compared to the Diversified Utilities industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AES
1.25
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
In the lower quartile for the Diversified Utilities industry, AES’s Interest Coverage Ratio of 1.25 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
BIP
1.46
Diversified Utilities Industry
- Max
- 6.39
- Q3
- 3.88
- Median
- 2.56
- Q1
- 1.73
- Min
- 1.25
In the lower quartile for the Diversified Utilities industry, BIP’s Interest Coverage Ratio of 1.46 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AES | BIP |
|---|---|---|
| Current Ratio (TTM) | 0.84 | 0.77 |
| Quick Ratio (TTM) | 0.78 | 0.73 |
| Debt-to-Equity Ratio (TTM) | 8.82 | 10.14 |
| Debt-to-Asset Ratio (TTM) | 0.63 | 0.54 |
| Net Debt-to-EBITDA Ratio (TTM) | 10.44 | 6.13 |
| Interest Coverage Ratio (TTM) | 1.25 | 1.46 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AES and BIP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AES
6.05%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
With a Dividend Yield of 6.05%, AES offers a more attractive income stream than most of its peers in the Diversified Utilities industry, signaling a strong commitment to shareholder returns.
BIP
4.90%
Diversified Utilities Industry
- Max
- 18.26%
- Q3
- 5.83%
- Median
- 4.74%
- Q1
- 2.93%
- Min
- 0.00%
BIP’s Dividend Yield of 4.90% is consistent with its peers in the Diversified Utilities industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AES
40.23%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
AES’s Dividend Payout Ratio of 40.23% is in the lower quartile for the Diversified Utilities industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
BIP
1,699.07%
Diversified Utilities Industry
- Max
- 89.06%
- Q3
- 77.28%
- Median
- 56.48%
- Q1
- 42.75%
- Min
- 0.00%
BIP’s Dividend Payout Ratio of 1,699.07% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | AES | BIP |
|---|---|---|
| Dividend Yield (TTM) | 6.05% | 4.90% |
| Dividend Payout Ratio (TTM) | 40.23% | 1699.07% |
Valuation
Price-to-Earnings Ratio
AES
6.70
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
In the lower quartile for the Diversified Utilities industry, AES’s P/E Ratio of 6.70 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
BIP
146.98
Diversified Utilities Industry
- Max
- 25.08
- Q3
- 19.50
- Median
- 15.21
- Q1
- 11.42
- Min
- 2.74
At 146.98, BIP’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Diversified Utilities industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
AES
2.33
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
AES’s Forward PEG Ratio of 2.33 is within the middle range of its peers in the Diversified Utilities industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
BIP
-1.47
Diversified Utilities Industry
- Max
- 3.39
- Q3
- 2.59
- Median
- 2.31
- Q1
- 1.97
- Min
- 1.69
BIP has a negative Forward PEG Ratio of -1.47. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
Price-to-Sales Ratio
AES
0.68
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
In the lower quartile for the Diversified Utilities industry, AES’s P/S Ratio of 0.68 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
BIP
0.74
Diversified Utilities Industry
- Max
- 3.68
- Q3
- 2.25
- Median
- 1.75
- Q1
- 0.80
- Min
- 0.47
In the lower quartile for the Diversified Utilities industry, BIP’s P/S Ratio of 0.74 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
AES
2.36
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
AES’s P/B Ratio of 2.36 is in the upper tier for the Diversified Utilities industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
BIP
2.86
Diversified Utilities Industry
- Max
- 2.56
- Q3
- 1.75
- Median
- 1.29
- Q1
- 1.12
- Min
- 0.31
At 2.86, BIP’s P/B Ratio is at an extreme premium to the Diversified 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 | AES | BIP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 6.70 | 146.98 |
| Forward PEG Ratio (TTM) | 2.33 | -1.47 |
| Price-to-Sales Ratio (P/S, TTM) | 0.68 | 0.74 |
| Price-to-Book Ratio (P/B, TTM) | 2.36 | 2.86 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -2.35 | 20.39 |
| EV-to-EBITDA (TTM) | 13.40 | 7.90 |
| EV-to-Sales (TTM) | 3.06 | 3.30 |