American Electric Power Company, Inc. (AEP) vs Entergy Corporation (ETR)

American Electric Power Company, Inc. and Entergy Corporation are both Utilities Regulated Electric companies. American Electric Power Company, Inc. is the larger, with a market value of $69.0B against $52.7B — 1.3× the size. American Electric Power Company, Inc. trades at the lower P/E: 20.3× against 25.0×. American Electric Power Company, Inc. grew revenue faster over the last twelve months: 11.1% against 10.3%. Entergy Corporation has the higher net margin (14.6% vs 14.2%) and the higher return on invested capital (4.28% vs 3.94%). Both pay a dividend; American Electric Power Company, Inc. yields more (3.00% vs 2.32%). Across the 22 metrics below, American Electric Power Company, Inc. leads on 14 and Entergy Corporation on 8.

Valuation

Metric AEP ETR Utilities Regulated Electric median
P/E 20.29 24.97 19.45
P/S 2.92 3.70 2.78
P/B 2.03 2.62 1.82
Price to free cash flow n/m n/m 45.34
EV/EBITDA 13.19 13.52 12.40
EV/Sales 5.20 5.87 4.95
Earnings yield 4.93% 4.01% 5.12%
Free cash flow yield (5.93%) (7.09%) (5.93%)

Profitability

Metric AEP ETR Utilities Regulated Electric median
Gross margin 68.39% 71.24% 62.00%
Operating margin 23.43% 24.57% 21.72%
Net margin 14.21% 14.56% 13.45%
Free cash flow margin (17.33%) (26.24%) (11.71%)
Return on equity 10.24% 11.21% 9.94%
Return on assets 2.84% 2.69% 2.85%
Return on invested capital 3.94% 4.28% 3.95%

Growth

Metric AEP ETR Utilities Regulated Electric median
Revenue growth (TTM) 11.08% 10.25% 7.78%
EPS growth (last fiscal year) 19.64% 59.59% 6.01%
Revenue growth, 5-year CAGR 7.96% 5.06% 6.72%
Net income growth, 5-year CAGR 10.23% 4.84% 6.50%

Health

Metric AEP ETR Utilities Regulated Electric median
Debt to equity 1.60 1.74 1.54
Current ratio 0.51 1.18 0.88
Net debt to EBITDA 5.49 4.94 5.27

Dividend

Metric AEP ETR Utilities Regulated Electric median
Dividend yield 3.00% 2.32% 3.16%
Payout ratio 0.61 0.59 0.63

Size

Metric AEP ETR Utilities Regulated Electric median
Market cap 69.03b 52.70b 26.54b

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