Welcome to the first installment of our series comparing powerhouse companies from the Philippines and the United States. Our goal is to shed light on the scale, breadth, and unique strengths of Philippine companies by placing them side-by-side with their American counterparts. This journey begins in the energy sector, where we analyze American Electric Power (AEP), a titan in U.S. utilities, against Manila Electric Company (Meralco), the Philippines’ leading electricity distributor. By examining their operations, financials, and valuation multiples, we aim to put the scope of Philippine businesses into perspective and uncover insights for investors and enthusiasts alike.

Introducing American Electric Power (AEP)

American Electric Power (AEP), headquartered in Columbus, Ohio, is one of the largest investor-owned electric utilities in the United States. Established in 1906 as the American Gas and Electric Company, AEP has grown through strategic acquisitions, notably its 2000 merger with Central and South West Corporation, expanding its reach into the Southwest. Serving 5.6 million customers across 11 states, AEP manages a diverse portfolio of nearly 38,000 MW in generation capacity (coal, gas, nuclear, renewables), the nation’s largest transmission network (40,000 miles), and extensive distribution systems. With $103 billion in assets and a workforce of over 16,000, AEP is a cornerstone of U.S. energy, targeting net-zero emissions by 2045 while investing heavily in grid modernization to meet rising demand from data centers and electrification.

Key Comparison: AEP vs. Meralco

AEP and Meralco operate in distinct energy landscapes shaped by geography, regulation, and market dynamics. AEP is a vertically integrated utility with significant generation, transmission, and distribution assets across a vast U.S. footprint. Meralco, by contrast, focuses on distribution and power procurement in the densely populated Metro Manila region and nearby provinces, serving a more urbanized customer base under the Philippines’ evolving regulatory framework. This comparison highlights the scale of AEP’s operations against Meralco’s concentrated efficiency, offering a window into how Philippine companies compete globally.

Below is a table comparing key figures for AEP and Meralco, based on trailing twelve months (TTM) data as of September 2025. Valuation multiples are included to show how markets price these companies relative to their earnings, sales, and assets. Meralco’s figures are converted to USD using an approximate rate of 1 USD = 56 PHP.

Metric	AEP (USD)	Meralco (USD)	Insights
Revenue (TTM)	$20.66 billion	~$8.3 billion	AEP’s integrated operations yield higher revenue; Meralco leverages urban density.
Net Income (TTM)	~$2.95 billion	~$0.77 billion	AEP’s scale drives stronger profits; Meralco’s focus is distribution efficiency.
Customers Served	5.6 million	~7.1 million	Meralco serves more customers in a smaller, urban area, highlighting PH market density.
Generating Capacity	38,000 MW (owned)	~12,400 MW (contracted)	AEP owns diverse assets; Meralco relies on third-party power producers.
Market Cap	$57.26 billion	~$10.78 billion	AEP’s valuation reflects U.S. market depth; Meralco’s is sizable for an emerging market.
Dividend per Share (Annual)	$3.72	~$0.43	AEP’s higher dividends appeal to income investors; Meralco offers solid yield for PH.
EPS (TTM)	$5.50	~$0.72	AEP’s earnings power reflects its broader operations.
Trailing P/E	15.96	12.07	Meralco trades at a discount, signaling value in the Philippine market.
Forward P/E	17.39	10.81	Meralco’s lower forward P/E suggests growth potential in PH recovery.
PEG Ratio	2.25	—	AEP’s PEG reflects steady growth; Meralco data unavailable.
Price/Sales (TTM)	2.82	1.17	AEP’s premium reflects its integrated model; Meralco’s lower ratio indicates value.
Price/Book (MRQ)	1.95	3.98	Meralco’s higher P/B suggests strong market confidence in its assets.
EV/EBITDA	11.60	8.85	Meralco’s lower EV/EBITDA makes it attractive for value-focused investors.
EV/Revenue (TTM)	5.05	1.28	AEP’s higher multiple reflects its capital-intensive infrastructure.

Scaling the Divide: What We Learn

This comparison underscores the impressive scale of Philippine companies like Meralco, which, despite a smaller footprint, serves more customers than AEP in a compact, urban market. AEP’s vast generation and transmission assets highlight the depth of U.S. utilities, while Meralco’s efficiency and growth potential showcase the dynamism of Philippine businesses. For investors, AEP offers stability and yield, while Meralco presents a compelling case for emerging market exposure. As we continue this series, we’ll explore more industries to put Philippine companies on the global stage. What’s next—tech, finance, or retail? Share your thoughts below!

For comments, suggestions, and questions about the Philippine infrastructure investment landscape, email – bjevangelista1988@gmail.com