AWK vs. KEP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AWK and KEP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AWK’s market capitalization of 27.31 billion USD is substantially larger than KEP’s 17.17 billion USD, indicating a significant difference in their market valuations.
With betas of 0.70 for AWK and 0.63 for KEP, both stocks show similar sensitivity to overall market movements.
KEP is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AWK, on the other hand, is a domestic entity.
| Symbol | AWK | KEP |
|---|---|---|
| Company Name | American Water Works Company, Inc. | Korea Electric Power Corporation |
| Country | US | KR |
| Sector | Utilities | Utilities |
| Industry | Regulated Water | Regulated Electric |
| CEO | John C. Griffith | Dong-Cheol Kim |
| Price | 140.05 USD | 13.37 USD |
| Market Cap | 27.31 billion USD | 17.17 billion USD |
| Beta | 0.70 | 0.63 |
| Exchange | NYSE | NYSE |
| IPO Date | April 23, 2008 | October 27, 1994 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AWK and KEP 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
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.
KEP
13.53%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
In the upper quartile for the Regulated Electric industry, KEP’s Return on Equity of 13.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
KEP
3.70%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
KEP’s Return on Invested Capital of 3.70% is in line with the norm for the Regulated Electric industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
KEP
5.63%
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, KEP’s Net Profit Margin of 5.63% 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
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.
KEP
11.50%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
KEP’s Operating Profit Margin of 11.50% is in the lower quartile for the Regulated Electric industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AWK | KEP |
|---|---|---|
| Return on Equity (TTM) | 10.35% | 13.53% |
| Return on Assets (TTM) | 3.23% | 2.12% |
| Return on Invested Capital (TTM) | 4.28% | 3.70% |
| Net Profit Margin (TTM) | 22.24% | 5.63% |
| Operating Profit Margin (TTM) | 36.59% | 11.50% |
| Gross Profit Margin (TTM) | 56.18% | 14.95% |
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.
KEP
0.47
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
KEP’s Current Ratio of 0.47 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
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.
KEP
0.52
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, KEP’s Debt-to-Equity Ratio of 0.52 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
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.
KEP
2.33
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
KEP’s Interest Coverage Ratio of 2.33 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 | AWK | KEP |
|---|---|---|
| Current Ratio (TTM) | 0.49 | 0.47 |
| Quick Ratio (TTM) | 0.44 | 0.32 |
| Debt-to-Equity Ratio (TTM) | 1.38 | 0.52 |
| Debt-to-Asset Ratio (TTM) | 0.44 | 0.09 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.31 | 1.07 |
| Interest Coverage Ratio (TTM) | 3.24 | 2.33 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AWK and KEP. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
KEP
0.00%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
KEP currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
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.
KEP
0.82%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
KEP’s Dividend Payout Ratio of 0.82% 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 | AWK | KEP |
|---|---|---|
| Dividend Yield (TTM) | 2.23% | 0.00% |
| Dividend Payout Ratio (TTM) | 55.65% | 0.82% |
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.
KEP
4.46
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
KEP’s P/E Ratio of 4.46 is below the typical range for the Regulated Electric industry. This may indicate that the stock is potentially undervalued, or it could reflect market concerns about the company’s future prospects.
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.
KEP
1.00
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
KEP’s Forward PEG Ratio of 1.00 is below the typical range for the Regulated Electric industry. This is a strong indicator that the stock may be undervalued, as its price appears low given its future growth prospects.
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.
KEP
0.25
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
KEP’s P/S Ratio of 0.25 falls below the typical floor for the Regulated Electric industry. This could suggest the stock is overlooked or deeply undervalued relative to its sales, but may also reflect significant market concerns about its future.
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.
KEP
0.56
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
KEP’s P/B Ratio of 0.56 is in the lower quartile for the Regulated Electric industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | AWK | KEP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 25.50 | 4.46 |
| Forward PEG Ratio (TTM) | 3.73 | 1.00 |
| Price-to-Sales Ratio (P/S, TTM) | 5.67 | 0.25 |
| Price-to-Book Ratio (P/B, TTM) | 2.59 | 0.56 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -31.04 | 11.09 |
| EV-to-EBITDA (TTM) | 15.39 | 2.36 |
| EV-to-Sales (TTM) | 8.66 | 0.46 |