Regulated Electric
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DTW vs AEP
Revenue, margins, valuation, and 5-year total return — side by side.
Regulated Electric
DTW vs AEP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Regulated Electric | Regulated Electric |
| Market Cap | $3.90B | $71.69B |
| Revenue (TTM) | $15.63B | $22.16B |
| Net Income (TTM) | $1.46B | $3.65B |
| Gross Margin | 37.6% | 40.4% |
| Operating Margin | 14.4% | 23.5% |
| Forward P/E | 2.8x | 20.8x |
| Total Debt | $26.52B | $50.24B |
| Cash & Equiv. | $250M | $268M |
DTW vs AEP — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| DTE Energy Company … (DTW) | 100 | 83.5 | -16.5% |
| American Electric P… (AEP) | 100 | 154.6 | +54.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DTW vs AEP
Each card shows where this stock fits in a portfolio — not just who wins on paper.
DTW is the clearest fit if your priority is growth exposure and defensive.
- Rev growth 26.9%, EPS growth 4.3%, 3Y rev CAGR -6.3%
- Beta 0.80, yield 19.4%, current ratio 0.80x
- 26.9% revenue growth vs AEP's 9.4%
AEP carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 21 yrs, beta 0.01, yield 2.9%
- 146.9% 10Y total return vs DTW's 30.0%
- Lower volatility, beta 0.01, current ratio 0.45x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 26.9% revenue growth vs AEP's 9.4% | |
| Value | Lower P/E (2.8x vs 20.8x) | |
| Quality / Margins | 16.5% margin vs DTW's 9.4% | |
| Stability / Safety | Beta 0.01 vs DTW's 0.80, lower leverage | |
| Dividends | 19.4% yield, 3-year raise streak, vs AEP's 2.9% | |
| Momentum (1Y) | +26.1% vs DTW's +7.1% | |
| Efficiency (ROA) | 3.2% ROA vs DTW's 2.8%, ROIC 5.1% vs 4.8% |
DTW vs AEP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
DTW vs AEP — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
AEP leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
AEP and DTW operate at a comparable scale, with $22.2B and $15.6B in trailing revenue. AEP is the more profitable business, keeping 16.5% of every revenue dollar as net income compared to DTW's 9.4%. On growth, DTW holds the edge at +23.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $15.6B | $22.2B |
| EBITDAEarnings before interest/tax | $4.1B | $8.8B |
| Net IncomeAfter-tax profit | $1.5B | $3.7B |
| Free Cash FlowCash after capex | -$1.0B | $840M |
| Gross MarginGross profit ÷ Revenue | +37.6% | +40.4% |
| Operating MarginEBIT ÷ Revenue | +14.4% | +23.5% |
| Net MarginNet income ÷ Revenue | +9.4% | +16.5% |
| FCF MarginFCF ÷ Revenue | -6.4% | +3.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +23.4% | +6.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +27.7% | +6.7% |
Valuation Metrics
DTW leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 3.1x trailing earnings, DTW trades at a 84% valuation discount to AEP's 19.8x P/E. On an enterprise value basis, DTW's 7.0x EV/EBITDA is more attractive than AEP's 13.8x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $3.9B | $71.7B |
| Enterprise ValueMkt cap + debt − cash | $30.2B | $121.7B |
| Trailing P/EPrice ÷ TTM EPS | 3.08x | 19.78x |
| Forward P/EPrice ÷ next-FY EPS est. | 2.81x | 20.77x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.32x |
| EV / EBITDAEnterprise value multiple | 7.05x | 13.84x |
| Price / SalesMarket cap ÷ Revenue | 0.25x | 3.29x |
| Price / BookPrice ÷ Book value/share | 0.37x | 2.13x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
AEP leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
DTW delivers a 12.2% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $11 for AEP. AEP carries lower financial leverage with a 1.56x debt-to-equity ratio, signaling a more conservative balance sheet compared to DTW's 2.16x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +12.2% | +11.5% |
| ROA (TTM)Return on assets | +2.8% | +3.2% |
| ROICReturn on invested capital | +4.8% | +5.1% |
| ROCEReturn on capital employed | +5.1% | +5.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 2.16x | 1.56x |
| Net DebtTotal debt minus cash | $26.3B | $50.0B |
| Cash & Equiv.Liquid assets | $250M | $268M |
| Total DebtShort + long-term debt | $26.5B | $50.2B |
| Interest CoverageEBIT ÷ Interest expense | 1.94x | 2.61x |
Total Returns (Dividends Reinvested)
AEP leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AEP five years ago would be worth $17,068 today (with dividends reinvested), compared to $10,754 for DTW. Over the past 12 months, AEP leads with a +26.1% total return vs DTW's +7.1%. The 3-year compound annual growth rate (CAGR) favors AEP at 15.7% vs DTW's 2.6% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +2.9% | +14.6% |
| 1-Year ReturnPast 12 months | +7.1% | +26.1% |
| 3-Year ReturnCumulative with dividends | +8.0% | +54.7% |
| 5-Year ReturnCumulative with dividends | +7.5% | +70.7% |
| 10-Year ReturnCumulative with dividends | +30.0% | +146.9% |
| CAGR (3Y)Annualised 3-year return | +2.6% | +15.7% |
Risk & Volatility
AEP leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
AEP is the less volatile stock with a 0.01 beta — it tends to amplify market swings less than DTW's 0.80 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.80x | 0.01x |
| 52-Week HighHighest price in past year | $23.23 | $139.44 |
| 52-Week LowLowest price in past year | $5.89 | $97.46 |
| % of 52W HighCurrent price vs 52-week peak | +93.5% | +94.5% |
| RSI (14)Momentum oscillator 0–100 | 70.3 | 46.5 |
| Avg Volume (50D)Average daily shares traded | 25K | 2.9M |
Analyst Outlook
Evenly matched — DTW and AEP each lead in 1 of 2 comparable metrics.
Analyst Outlook
For income investors, DTW offers the higher dividend yield at 19.37% vs AEP's 2.93%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Buy |
| Price TargetConsensus 12-month target | — | $136.20 |
| # AnalystsCovering analysts | — | 35 |
| Dividend YieldAnnual dividend ÷ price | +19.4% | +2.9% |
| Dividend StreakConsecutive years of raises | 3 | 21 |
| Dividend / ShareAnnual DPS | $4.21 | $3.86 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
AEP leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). DTW leads in 1 (Valuation Metrics). 1 tied.
DTW vs AEP: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DTW or AEP a better buy right now?
For growth investors, DTE Energy Company JR SUB DB 2017 E (DTW) is the stronger pick with 26.
9% revenue growth year-over-year, versus 9. 4% for American Electric Power Company, Inc. (AEP). DTE Energy Company JR SUB DB 2017 E (DTW) offers the better valuation at 3. 1x trailing P/E (2. 8x forward), making it the more compelling value choice. Analysts rate American Electric Power Company, Inc. (AEP) a "Buy" — based on 35 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DTW or AEP?
On trailing P/E, DTE Energy Company JR SUB DB 2017 E (DTW) is the cheapest at 3.
1x versus American Electric Power Company, Inc. at 19. 8x. On forward P/E, DTE Energy Company JR SUB DB 2017 E is actually cheaper at 2. 8x.
03Which is the better long-term investment — DTW or AEP?
Over the past 5 years, American Electric Power Company, Inc.
(AEP) delivered a total return of +70. 7%, compared to +7. 5% for DTE Energy Company JR SUB DB 2017 E (DTW). Over 10 years, the gap is even starker: AEP returned +146. 9% versus DTW's +30. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DTW or AEP?
By beta (market sensitivity over 5 years), American Electric Power Company, Inc.
(AEP) is the lower-risk stock at 0. 01β versus DTE Energy Company JR SUB DB 2017 E's 0. 80β — meaning DTW is approximately 12377% more volatile than AEP relative to the S&P 500. On balance sheet safety, American Electric Power Company, Inc. (AEP) carries a lower debt/equity ratio of 156% versus 2% for DTE Energy Company JR SUB DB 2017 E — giving it more financial flexibility in a downturn.
05Which is growing faster — DTW or AEP?
By revenue growth (latest reported year), DTE Energy Company JR SUB DB 2017 E (DTW) is pulling ahead at 26.
9% versus 9. 4% for American Electric Power Company, Inc. (AEP). On earnings-per-share growth, the picture is similar: American Electric Power Company, Inc. grew EPS 19. 4% year-over-year, compared to 4. 3% for DTE Energy Company JR SUB DB 2017 E. Over a 3-year CAGR, AEP leads at 4. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — DTW or AEP?
American Electric Power Company, Inc.
(AEP) is the more profitable company, earning 16. 4% net margin versus 9. 2% for DTE Energy Company JR SUB DB 2017 E — meaning it keeps 16. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AEP leads at 24. 3% versus 15. 0% for DTW. At the gross margin level — before operating expenses — DTW leads at 84. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is DTW or AEP more undervalued right now?
On forward earnings alone, DTE Energy Company JR SUB DB 2017 E (DTW) trades at 2.
8x forward P/E versus 20. 8x for American Electric Power Company, Inc. — 18. 0x cheaper on a one-year earnings basis.
08Which pays a better dividend — DTW or AEP?
All stocks in this comparison pay dividends.
DTE Energy Company JR SUB DB 2017 E (DTW) offers the highest yield at 19. 4%, versus 2. 9% for American Electric Power Company, Inc. (AEP).
09Is DTW or AEP better for a retirement portfolio?
For long-horizon retirement investors, American Electric Power Company, Inc.
(AEP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 01), 2. 9% yield, +146. 9% 10Y return). Both have compounded well over 10 years (AEP: +146. 9%, DTW: +30. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between DTW and AEP?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: DTW is a small-cap high-growth stock; AEP is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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