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AWK vs. FE: A Head-to-Head Stock Comparison

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Here’s a clear look at AWK and FE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AWK’s market capitalization stands at 27.31 billion USD, while FE’s is 23.02 billion USD, indicating their market valuations are broadly comparable.

AWK’s beta of 0.70 points to significantly higher volatility compared to FE (beta: 0.38), suggesting AWK has greater potential for both gains and losses relative to market movements.

SymbolAWKFE
Company NameAmerican Water Works Company, Inc.FirstEnergy Corp.
CountryUSUS
SectorUtilitiesUtilities
IndustryRegulated WaterRegulated Electric
CEOJohn C. GriffithBrian X. Tierney
Price140.05 USD39.88 USD
Market Cap27.31 billion USD23.02 billion USD
Beta0.700.38
ExchangeNYSENYSE
IPO DateApril 23, 2008November 10, 1997
ADRNoNo

Historical Performance

This chart compares the performance of AWK and FE 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.

AWK vs. FE: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AWK

10.35%

Regulated Water Industry

Max
10.35%
Q3
10.08%
Median
8.98%
Q1
8.05%
Min
7.36%

In the upper quartile for the Regulated Water industry, AWK’s Return on Equity of 10.35% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

FE

8.69%

Regulated Electric Industry

Max
18.07%
Q3
12.49%
Median
10.00%
Q1
8.48%
Min
5.02%

FE’s Return on Equity of 8.69% is on par with the norm for the Regulated Electric industry, indicating its profitability relative to shareholder equity is typical for the sector.

AWK vs. FE: A comparison of their ROE against their respective Regulated Water and Regulated Electric industry benchmarks.

Return on Invested Capital

AWK

4.28%

Regulated Water Industry

Max
6.92%
Q3
6.34%
Median
4.28%
Q1
3.77%
Min
2.54%

AWK’s Return on Invested Capital of 4.28% is in line with the norm for the Regulated Water industry, reflecting a standard level of efficiency in generating profits from its capital base.

FE

3.97%

Regulated Electric Industry

Max
5.26%
Q3
4.57%
Median
3.97%
Q1
3.33%
Min
1.92%

FE’s Return on Invested Capital of 3.97% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.

AWK vs. FE: A comparison of their ROIC against their respective Regulated Water and Regulated Electric industry benchmarks.

Net Profit Margin

AWK

22.24%

Regulated Water Industry

Max
27.17%
Q3
24.08%
Median
20.75%
Q1
16.72%
Min
6.15%

AWK’s Net Profit Margin of 22.24% is aligned with the median group of its peers in the Regulated Water industry. This indicates its ability to convert revenue into profit is typical for the sector.

FE

7.78%

Regulated Electric Industry

Max
22.24%
Q3
15.98%
Median
13.10%
Q1
11.03%
Min
3.79%

Falling into the lower quartile for the Regulated Electric industry, FE’s Net Profit Margin of 7.78% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

AWK vs. FE: A comparison of their Net Profit Margin against their respective Regulated Water and Regulated Electric industry benchmarks.

Operating Profit Margin

AWK

36.59%

Regulated Water Industry

Max
42.87%
Q3
36.84%
Median
28.06%
Q1
23.46%
Min
12.18%

AWK’s Operating Profit Margin of 36.59% is around the midpoint for the Regulated Water industry, indicating that its efficiency in managing core business operations is typical for the sector.

FE

18.04%

Regulated Electric Industry

Max
31.57%
Q3
25.65%
Median
21.93%
Q1
17.87%
Min
8.99%

FE’s Operating Profit Margin of 18.04% is around the midpoint for the Regulated Electric industry, indicating that its efficiency in managing core business operations is typical for the sector.

AWK vs. FE: A comparison of their Operating Margin against their respective Regulated Water and Regulated Electric industry benchmarks.

Profitability at a Glance

SymbolAWKFE
Return on Equity (TTM)10.35%8.69%
Return on Assets (TTM)3.23%2.06%
Return on Invested Capital (TTM)4.28%3.97%
Net Profit Margin (TTM)22.24%7.78%
Operating Profit Margin (TTM)36.59%18.04%
Gross Profit Margin (TTM)56.18%56.77%

Financial Strength

Current Ratio

AWK

0.49

Regulated Water Industry

Max
0.98
Q3
0.94
Median
0.81
Q1
0.59
Min
0.46

AWK’s Current Ratio of 0.49 falls into the lower quartile for the Regulated Water industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

FE

0.42

Regulated Electric Industry

Max
1.48
Q3
1.06
Median
0.86
Q1
0.73
Min
0.28

FE’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.

AWK vs. FE: A comparison of their Current Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Debt-to-Equity Ratio

AWK

1.38

Regulated Water Industry

Max
1.38
Q3
1.15
Median
0.90
Q1
0.77
Min
0.68

AWK’s leverage is in the upper quartile of the Regulated Water industry, with a Debt-to-Equity Ratio of 1.38. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

FE

1.97

Regulated Electric Industry

Max
2.38
Q3
1.97
Median
1.65
Q1
1.28
Min
0.27

FE’s leverage is in the upper quartile of the Regulated Electric industry, with a Debt-to-Equity Ratio of 1.97. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

AWK vs. FE: A comparison of their D/E Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Interest Coverage Ratio

AWK

3.24

Regulated Water Industry

Max
4.22
Q3
4.04
Median
3.07
Q1
3.00
Min
2.48

AWK’s Interest Coverage Ratio of 3.24 is positioned comfortably within the norm for the Regulated Water industry, indicating a standard and healthy capacity to cover its interest payments.

FE

2.55

Regulated Electric Industry

Max
3.07
Q3
2.63
Median
2.41
Q1
2.30
Min
1.87

FE’s Interest Coverage Ratio of 2.55 is positioned comfortably within the norm for the Regulated Electric industry, indicating a standard and healthy capacity to cover its interest payments.

AWK vs. FE: A comparison of their Interest Coverage against their respective Regulated Water and Regulated Electric industry benchmarks.

Financial Strength at a Glance

SymbolAWKFE
Current Ratio (TTM)0.490.42
Quick Ratio (TTM)0.440.34
Debt-to-Equity Ratio (TTM)1.381.97
Debt-to-Asset Ratio (TTM)0.440.47
Net Debt-to-EBITDA Ratio (TTM)5.315.77
Interest Coverage Ratio (TTM)3.242.55

Growth

The following charts compare key year-over-year (YoY) growth metrics for AWK and FE. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AWK vs. FE: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AWK vs. FE: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AWK vs. FE: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AWK

2.23%

Regulated Water Industry

Max
3.58%
Q3
2.94%
Median
2.44%
Q1
2.07%
Min
0.81%

AWK’s Dividend Yield of 2.23% is consistent with its peers in the Regulated Water industry, providing a dividend return that is standard for its sector.

FE

4.31%

Regulated Electric Industry

Max
6.60%
Q3
4.03%
Median
3.30%
Q1
3.06%
Min
0.00%

With a Dividend Yield of 4.31%, FE offers a more attractive income stream than most of its peers in the Regulated Electric industry, signaling a strong commitment to shareholder returns.

AWK vs. FE: A comparison of their Dividend Yield against their respective Regulated Water and Regulated Electric industry benchmarks.

Dividend Payout Ratio

AWK

55.65%

Regulated Water Industry

Max
99.35%
Q3
57.39%
Median
55.65%
Q1
52.94%
Min
0.00%

AWK’s Dividend Payout Ratio of 55.65% is within the typical range for the Regulated Water industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

FE

90.32%

Regulated Electric Industry

Max
123.06%
Q3
69.07%
Median
62.27%
Q1
52.66%
Min
0.00%

FE’s Dividend Payout Ratio of 90.32% 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.

AWK vs. FE: A comparison of their Payout Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Dividend at a Glance

SymbolAWKFE
Dividend Yield (TTM)2.23%4.31%
Dividend Payout Ratio (TTM)55.65%90.32%

Valuation

Price-to-Earnings Ratio

AWK

25.50

Regulated Water Industry

Max
26.42
Q3
23.54
Median
20.16
Q1
17.14
Min
8.21

A P/E Ratio of 25.50 places AWK in the upper quartile for the Regulated Water industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

FE

21.21

Regulated Electric Industry

Max
26.46
Q3
21.71
Median
19.07
Q1
17.74
Min
12.74

FE’s P/E Ratio of 21.21 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.

AWK vs. FE: A comparison of their P/E Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Forward P/E to Growth Ratio

AWK

3.73

Regulated Water Industry

Max
3.77
Q3
3.33
Median
2.11
Q1
1.48
Min
0.23

A Forward PEG Ratio of 3.73 places AWK in the upper quartile for the Regulated Water industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

FE

3.03

Regulated Electric Industry

Max
4.21
Q3
3.10
Median
2.78
Q1
2.34
Min
1.46

FE’s Forward PEG Ratio of 3.03 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.

AWK vs. FE: A comparison of their Forward PEG Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Price-to-Sales Ratio

AWK

5.67

Regulated Water Industry

Max
6.05
Q3
4.92
Median
3.71
Q1
2.93
Min
2.18

AWK’s P/S Ratio of 5.67 is in the upper echelon for the Regulated Water 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.

FE

1.65

Regulated Electric Industry

Max
3.88
Q3
3.19
Median
2.68
Q1
1.96
Min
0.27

In the lower quartile for the Regulated Electric industry, FE’s P/S Ratio of 1.65 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.

AWK vs. FE: A comparison of their P/S Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Price-to-Book Ratio

AWK

2.59

Regulated Water Industry

Max
3.06
Q3
2.19
Median
1.97
Q1
1.62
Min
1.25

AWK’s P/B Ratio of 2.59 is in the upper tier for the Regulated Water 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.

FE

1.83

Regulated Electric Industry

Max
2.95
Q3
2.37
Median
1.89
Q1
1.43
Min
0.55

FE’s P/B Ratio of 1.83 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.

AWK vs. FE: A comparison of their P/B Ratio against their respective Regulated Water and Regulated Electric industry benchmarks.

Valuation at a Glance

SymbolAWKFE
Price-to-Earnings Ratio (P/E, TTM)25.5021.21
Forward PEG Ratio (TTM)3.733.03
Price-to-Sales Ratio (P/S, TTM)5.671.65
Price-to-Book Ratio (P/B, TTM)2.591.83
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-31.04-34.00
EV-to-EBITDA (TTM)15.3911.16
EV-to-Sales (TTM)8.663.42