ETR vs AEP vs SO vs EXC

For growth investors, The Southern Company (SO) is the stronger pick with 10.

6% revenue growth year-over-year, versus 5. 3% for Exelon Corporation (EXC). Exelon Corporation (EXC) offers the better valuation at 16. 2x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Entergy Corporation (ETR) a "Buy" — based on 31 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.

On trailing P/E, Exelon Corporation (EXC) is the cheapest at 16.

2x versus Entergy Corporation at 28. 7x. On forward P/E, Exelon Corporation is actually cheaper at 15. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: American Electric Power Company, Inc. wins at 2. 43x versus Entergy Corporation's 10. 06x.

Over the past 5 years, Entergy Corporation (ETR) delivered a total return of +127.

6%, compared to +60. 6% for The Southern Company (SO). Over 10 years, the gap is even starker: ETR returned +246. 8% versus EXC's +125. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), The Southern Company (SO) is the lower-risk stock at -0.

15β versus Entergy Corporation's 0. 30β — meaning ETR is approximately -300% more volatile than SO 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 180% for Entergy Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), The Southern Company (SO) is pulling ahead at 10.

6% versus 5. 3% for Exelon Corporation (EXC). On earnings-per-share growth, the picture is similar: Entergy Corporation grew EPS 59. 6% year-over-year, compared to -1. 8% for The Southern Company. Over a 3-year CAGR, EXC leads at 8. 3% 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.

American Electric Power Company, Inc.

(AEP) is the more profitable company, earning 16. 4% net margin versus 11. 4% for Exelon Corporation — meaning it keeps 16. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SO leads at 24. 6% versus 21. 2% for EXC. At the gross margin level — before operating expenses — AEP leads at 31. 8%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, American Electric Power Company, Inc. (AEP) is the more undervalued stock at a PEG of 2. 43x versus Entergy Corporation's 10. 06x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Exelon Corporation (EXC) trades at 15. 6x forward P/E versus 25. 5x for Entergy Corporation — 9. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EXC: 10. 7% to $49. 18.

All stocks in this comparison pay dividends.

Exelon Corporation (EXC) offers the highest yield at 3. 6%, versus 2. 1% for Entergy Corporation (ETR).

For long-horizon retirement investors, The Southern Company (SO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

15), 2. 9% yield, +137. 8% 10Y return). Both have compounded well over 10 years (SO: +137. 8%, ETR: +246. 8%), 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.

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: ETR is a mid-cap quality compounder stock; AEP is a mid-cap quality compounder stock; SO is a mid-cap quality compounder stock; EXC is a mid-cap deep-value 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.