American Electric Power Company, Inc. (AEP) vs Duke Energy Corporation (DUK)

American Electric Power Company, Inc. and Duke Energy Corporation are both Utilities Regulated Electric companies. Duke Energy Corporation is the larger, with a market value of $88.1B against $64.1B — 1.4× the size. Duke Energy Corporation trades at the lower P/E: 17.0× against 20.3×. American Electric Power Company, Inc. grew revenue faster over the last twelve months: 10.3% against 6.33%. Duke Energy Corporation has the higher net margin (15.6% vs 13.8%) and the higher return on invested capital (3.97% vs 3.83%). Both pay a dividend; Duke Energy Corporation yields more (4.54% vs 4.44%). Across the 22 metrics below, Duke Energy Corporation leads on 14 and American Electric Power Company, Inc. on 8.

Valuation

Metric AEP DUK Utilities Regulated Electric median
P/E 20.30 17.02 18.84
P/S 2.83 2.66 2.52
P/B 1.93 1.58 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.15 10.40 11.82
EV/Sales 5.11 5.31 4.58
Earnings yield 4.93% 5.88% 5.30%
Free cash flow yield (3.81%) (4.84%) (5.06%)

Profitability

Metric AEP DUK Utilities Regulated Electric median
Gross margin 67.72% 71.37% 66.28%
Operating margin 23.00% 27.75% 21.79%
Net margin 13.78% 15.61% 12.94%
Free cash flow margin (10.78%) (12.85%) (11.51%)
Return on equity 9.78% 9.70% 9.75%
Return on assets 2.74% 2.66% 2.75%
Return on invested capital 3.83% 3.97% 3.87%

Growth

Metric AEP DUK Utilities Regulated Electric median
Revenue growth (TTM) 10.28% 6.33% 7.43%
EPS growth (last fiscal year) 19.64% 10.51% —
Revenue growth, 5-year CAGR 7.96% 6.65% 6.75%
Net income growth, 5-year CAGR 10.23% 31.07% 6.44%

Health

Metric AEP DUK Utilities Regulated Electric median
Debt to equity 1.59 1.56 1.53
Current ratio 0.50 0.66 0.81
Net debt to EBITDA 5.49 5.33 5.25

Dividend

Metric AEP DUK Utilities Regulated Electric median
Dividend yield 4.44% 4.54% 4.33%
Payout ratio 0.85 0.86 0.66

Size

Metric AEP DUK Utilities Regulated Electric median
Market cap 64.06b 88.11b 22.90b

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