American Electric Power (NYSE: AEP) is one of 81 publicly-traded companies in the “Electric Utilities” industry, but how does it compare to its competitors? We will compare American Electric Power to related companies based on the strength of its valuation, institutional ownership, earnings, risk, dividends, profitability and analyst recommendations.
This is a summary of current recommendations for American Electric Power and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Electric Power||0||8||5||0||2.38|
|American Electric Power Competitors||526||2951||2387||43||2.33|
American Electric Power currently has a consensus price target of $73.91, indicating a potential downside of 3.53%. As a group, “Electric Utilities” companies have a potential upside of 8.17%. Given American Electric Power’s competitors higher possible upside, analysts clearly believe American Electric Power has less favorable growth aspects than its competitors.
Volatility & Risk
American Electric Power has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, American Electric Power’s competitors have a beta of 0.64, suggesting that their average stock price is 36% less volatile than the S&P 500.
Insider & Institutional Ownership
71.0% of American Electric Power shares are owned by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.2% of American Electric Power shares are owned by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares American Electric Power and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|American Electric Power||$16.40 billion||$610.90 million||20.06|
|American Electric Power Competitors||$7.66 billion||$831.80 million||49.88|
American Electric Power has higher revenue, but lower earnings than its competitors. American Electric Power is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares American Electric Power and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Electric Power||12.21%||9.67%||2.73%|
|American Electric Power Competitors||-9.39%||9.72%||2.72%|
American Electric Power pays an annual dividend of $2.48 per share and has a dividend yield of 3.2%. American Electric Power pays out 64.9% of its earnings in the form of a dividend. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 99.7% of their earnings in the form of a dividend. American Electric Power has raised its dividend for 4 consecutive years. American Electric Power is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
American Electric Power competitors beat American Electric Power on 8 of the 15 factors compared.
About American Electric Power
American Electric Power Company, Inc. (AEP) is a public utility holding company that owns, directly or indirectly, all of the outstanding common stock of its public utility subsidiaries and varying percentages of other subsidiaries. The service areas of the Company’s public utility subsidiaries cover the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia. The Company’s segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. AEP’s vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers. Transmission and Distribution Utilities segment consists of the transmission and distribution of electricity for sale to retail and wholesale customers. AEP Transmission Holdco develops, constructs and operates transmission facilities.
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