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AEP vs AWK

AEP
American Electric Power Company, Inc.
NEUTRAL
Price
$131.85
Market Cap
$71.67B
Sector
Utilities
AI Confidence
90%
AWK
American Water Works Company, Inc.
NEUTRAL
Price
$129.71
Market Cap
$25.32B
Sector
Utilities
AI Confidence
72%

Valuation

P/E Ratio
AEP
19.8
AWK
23.08
Forward P/E
AEP
19.22
AWK
21.26
P/B Ratio
AEP
2.29
AWK
2.32
P/S Ratio
AEP
3.28
AWK
4.99
EV/EBITDA
AEP
13.54
AWK
14.65

Profitability

Gross Margin
AEP
47.52%
AWK
60.75%
Operating Margin
AEP
22.84%
AWK
42.59%
Profit Margin
AEP
16.36%
AWK
21.93%
ROE
AEP
12.49%
AWK
10.46%
ROA
AEP
3.17%
AWK
3.55%

Growth

Revenue Growth
AEP
13.2%
AWK
9.7%
Earnings Growth
AEP
-12.6%
AWK
8.1%

Financial Health

Debt/Equity
AEP
1.54
AWK
1.41
Current Ratio
AEP
0.46
AWK
0.42
Quick Ratio
AEP
0.25
AWK
0.31

Dividends

Dividend Yield
AEP
2.9%
AWK
2.52%
Payout Ratio
AEP
56.16%
AWK
55.98%

AI Verdict

AEP NEUTRAL

AEP shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Company has established market presence
Risks
Limited historical data available for full assessment
AWK NEUTRAL

American Water Works (AWK) exhibits a weak Piotroski F-Score of 4/9, indicating borderline financial health, and lacks an Altman Z-Score, limiting distress risk assessment. The stock trades above both the Graham Number ($84.07) and intrinsic value estimate ($107.62) at $129.71, reflecting a premium valuation despite solid profitability and regulated utility stability. Revenue and earnings growth are steady but not exceptional, while high debt/equity and poor liquidity ratios raise concerns. Analysts consensus is a 'hold' with a target price of $141.55, suggesting limited upside.

Strengths
High gross margin (60.75%) and operating margin (42.59%) reflect strong pricing power and cost control in a regulated environment
Consistent year-over-year revenue growth (9.70%) and earnings growth (~8%) demonstrate operational stability
Dividend yield of 2.52% is above sector average with a sustainable payout ratio (55.98%)
Risks
Low Piotroski F-Score (4/9) signals weak financial health, particularly in liquidity and leverage metrics
Very low current ratio (0.42) and quick ratio (0.31) indicate potential short-term liquidity pressure
High debt/equity ratio (1.41) exceeds sector average (1.68), increasing financial risk in rising rate environments

Compare Another Pair

AEP vs AWK: Head-to-Head Comparison

This page compares American Electric Power Company, Inc. (AEP) and American Water Works Company, Inc. (AWK) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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