American Electric Power Company, Inc. vs SOUTHERN CO, two Utilities stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Both American Electric Power and Southern Company earn a regulated return on invested capital and send most of it back as dividends. AEP trades at 20.53 times earnings against Southern's 24.81, and its return on equity, 11.51 percent, edges Southern's 10.93. The two split on cash: AEP threw off free cash equal to 3.42 percent of its price while Southern spent more than it generated, a negative 3.17 percent free cash yield that reflects heavy capital building. Southern is the larger company at 109.4 billion versus 75.9 billion, pays a fatter dividend at 3.03 percent against 2.7, and asks a higher price to book, 2.74 to 2.30.
Comparison updated 2026-07-11.
| Metric | AEP | SO |
|---|---|---|
| Price | $135.41 | $95.61 |
| Market cap | $74.1B | $107.8B |
| Sector | Utilities | Utilities |
| Stage | Mature | Growth |
| P/E | 20.0 | 24.4 |
| P/B | 2.25 | 2.70 |
| P/S | 3.33 | 3.57 |
| EV/EBITDA | 23.4 | 14.9 |
| Revenue growth | +8.6% | +8.6% |
| Operating margin | 22.6% | 24.0% |
| Net margin | 17.1% | 14.5% |
| Return on equity | 11.5% | 10.9% |
| Return on assets | 3.2% | 2.8% |
| Return on invested capital | 5.0% | 15.0% |
| FCF yield | 3.5% | -3.2% |
| Dividend yield | 2.8% | 3.1% |
| Debt / equity | 1.58 | 0.04 |
| Current ratio | 0.53 | 0.65 |
| Altman Z (solvency) | 0.88 | 0.75 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.