Financial Survey: CLP (CLPHY) and American Electric Power (AEP)
CLP (NYSE: AEP) and American Electric Power (NYSE:AEP) are both large-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.
This is a breakdown of current recommendations for CLP and American Electric Power, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Electric Power||0||6||11||0||2.65|
Earnings and Valuation
This table compares CLP and American Electric Power’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CLP||$11.81 billion||2.51||$1.86 billion||$0.72||16.28|
|American Electric Power||$15.40 billion||2.30||$1.91 billion||$3.68||19.51|
American Electric Power has higher revenue and earnings than CLP. CLP is trading at a lower price-to-earnings ratio than American Electric Power, indicating that it is currently the more affordable of the two stocks.
This table compares CLP and American Electric Power’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Electric Power||12.09%||10.50%||2.96%|
CLP pays an annual dividend of $0.25 per share and has a dividend yield of 2.1%. American Electric Power pays an annual dividend of $2.48 per share and has a dividend yield of 3.5%. CLP pays out 34.7% of its earnings in the form of a dividend. American Electric Power pays out 67.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Electric Power has increased its dividend for 5 consecutive years. American Electric Power is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
0.1% of CLP shares are held by institutional investors. Comparatively, 72.5% of American Electric Power shares are held by institutional investors. 0.2% of American Electric Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
CLP has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500.
American Electric Power beats CLP on 13 of the 16 factors compared between the two stocks.
CLP Holdings Limited, an investment holding company, generates, transmits, and distributes electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, oil, gas, nuclear, wind, hydro, and solar power plants. It is also involved in the provision of pumped storage and engineering services; research and development activities; property investment; and retail of electricity and gas. As of December 31, 2017 the company had equity generating capacity of 19,395 megawatts (MW) and purchasing capacity of 5, 159 MW. CLP Holdings Limited was founded in 1901 and is based in Kowloon, Hong Kong.
About American Electric Power
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. The company owns, leases, or controls approximately 3,675 railcars, 468 barges, 11 towboats, and a coal handling terminal with approximately 18 million tons of annual capacity. American Electric Power Company, Inc. was founded in 1906 and is headquartered in Columbus, Ohio.
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