Xcel Energy (XEL) Competitors

Xcel Energy (NASDAQ:XEL) and American Electric Power (NASDAQ:AEP) are both large-cap utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk, earnings and media sentiment.

Which has preferable valuation and earnings, XEL or AEP?

American Electric Power has higher revenue and earnings than Xcel Energy. American Electric Power is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xcel Energy	$13.44B	3.22	$1.94B	$3.61	20.25
American Electric Power	$19.72B	2.96	$2.97B	$6.84	15.94

Does the media prefer XEL or AEP?

In the previous week, American Electric Power had 13 more articles in the media than Xcel Energy. MarketBeat recorded 33 mentions for American Electric Power and 20 mentions for Xcel Energy. Xcel Energy's average media sentiment score of 1.72 beat American Electric Power's score of 1.28 indicating that Xcel Energy is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Xcel Energy	17 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
American Electric Power	25 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in XEL or AEP?

78.4% of Xcel Energy shares are owned by institutional investors. Comparatively, 75.2% of American Electric Power shares are owned by institutional investors. 0.1% of Xcel Energy shares are owned by insiders. Comparatively, 0.1% of American Electric Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Is XEL or AEP a better dividend stock?

Xcel Energy pays an annual dividend of $2.28 per share and has a dividend yield of 3.1%. American Electric Power pays an annual dividend of $3.72 per share and has a dividend yield of 3.4%. Xcel Energy pays out 63.2% of its earnings in the form of a dividend. American Electric Power pays out 54.4% 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. Xcel Energy has raised its dividend for 22 consecutive years and American Electric Power has raised its dividend for 15 consecutive years. American Electric Power is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts rate XEL or AEP?

Xcel Energy presently has a consensus target price of $76.80, suggesting a potential upside of 5.03%. American Electric Power has a consensus target price of $111.93, suggesting a potential upside of 2.66%. Given Xcel Energy's stronger consensus rating and higher probable upside, research analysts plainly believe Xcel Energy is more favorable than American Electric Power.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xcel Energy	0 Sell rating(s)	2 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.80
American Electric Power	1 Sell rating(s)	8 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.29

Is XEL or AEP more profitable?

American Electric Power has a net margin of 17.68% compared to Xcel Energy's net margin of 14.85%. American Electric Power's return on equity of 11.55% beat Xcel Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Xcel Energy	14.85%	10.52%	2.92%
American Electric Power	17.68%	11.55%	3.11%

Which has more volatility and risk, XEL or AEP?

Xcel Energy has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Summary

American Electric Power beats Xcel Energy on 10 of the 19 factors compared between the two stocks.