AEP vs. NEE: American Electric Power vs. NextEra Energy Stock Comparison
How do American Electric Power (AEP) and NextEra Energy (NEE) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.
Company Profile
American Electric Power (AEP) and NextEra Energy (NEE) are both classified in the Electric Utilities sub-industry within the broader Electric Utilities industry, placing them in the closest GICS peer bucket.
| Profile Item | AEP | NEE |
|---|---|---|
| Name | American Electric Power Company, Inc. | NextEra Energy, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Utilities | Utilities |
| GICS Industry Group | Utilities | Utilities |
| GICS Industry | Electric Utilities | Electric Utilities |
| GICS Sub-Industry | Electric Utilities | Electric Utilities |
| Market Capitalization | 73.43 billion USD | 182.74 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | AEP | NEE |
|---|---|---|
| Total Return (1Y) | 34.81% | 26.27% |
Risk
Drawdown
Risk at a Glance
| Metric | AEP | NEE |
|---|---|---|
| Volatility (1Y, Annualized) | 18.56% | 23.61% |
| Beta (5Y) | 0.51 | 0.67 |
| Avg. Volume (3M) | 4.18M | 10.69M |
Profitability
ROE (TTM)
American Electric Power (AEP) at 12.59% sits in the top ROE quartile, while NextEra Energy (NEE) at 10.33% is closer to the peer norm — stronger capital efficiency for AEP.
AEP
Utilities industry group
12.59%
- Max
- 16.11%
- AEP
- 12.59%
- Q3
- 11.15%
- Median
- 9.46%
- Q1
- 7.50%
- Min
- 2.67%
NEE
Utilities industry group
10.33%
- Max
- 16.11%
- Q3
- 11.15%
- NEE
- 10.33%
- Median
- 9.46%
- Q1
- 7.50%
- Min
- 2.67%
Net Margin (TTM)
NextEra Energy (NEE) at 29.37% retains a top-quartile share of revenue as profit, ahead of American Electric Power (AEP) at 16.29%, which keeps about the industry-typical share.
AEP
Utilities industry group
16.29%
- Max
- 29.37%
- Q3
- 17.31%
- AEP
- 16.29%
- Median
- 12.55%
- Q1
- 9.24%
- Min
- -0.65%
NEE
Utilities industry group
29.37%
- NEE
- 29.37%
- Max
- 29.37%
- Q3
- 17.31%
- Median
- 12.55%
- Q1
- 9.24%
- Min
- -0.65%
Operating Margin (TTM)
NextEra Energy (NEE) at 30.18% operates in the top operating margin quartile, ahead of American Electric Power (AEP) at 23.74%, which runs around its industry’s norm.
AEP
Utilities industry group
23.74%
- Max
- 43.52%
- Q3
- 30.09%
- AEP
- 23.74%
- Median
- 23.50%
- Q1
- 16.61%
- Min
- 0.00%
NEE
Utilities industry group
30.18%
- Max
- 43.52%
- NEE
- 30.18%
- Q3
- 30.09%
- Median
- 23.50%
- Q1
- 16.61%
- Min
- 0.00%
Profitability at a Glance
| Metric | AEP | NEE |
|---|---|---|
| ROE (TTM) | 12.59% | 10.33% |
| ROA (TTM) | 3.17% | 2.41% |
| Net Margin (TTM) | 16.29% | 29.37% |
| Operating Margin (TTM) | 23.74% | 30.18% |
| Gross Margin (TTM) | 47.24% | 61.40% |
Growth
Revenue Growth
Revenue Growth at a Glance
| Metric | AEP | NEE |
|---|---|---|
| Revenue Growth (YoY) | 10.93% | 10.74% |
| Revenue Growth (3Y CAGR) | 3.66% | 9.36% |
EPS Growth
EPS Growth at a Glance
| Metric | AEP | NEE |
|---|---|---|
| EPS Growth (YoY) | 19.35% | -2.63% |
| EPS Growth (3Y CAGR) | 14.04% | 16.28% |
Financial Strength
Current Ratio (MRQ)
Both American Electric Power (AEP) at 0.53 and NextEra Energy (NEE) at 0.54 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
AEP
Utilities industry group
0.53
- Max
- 1.88
- Q3
- 1.16
- Median
- 0.90
- Q1
- 0.65
- AEP
- 0.53
- Min
- 0.33
NEE
Utilities industry group
0.54
- Max
- 1.88
- Q3
- 1.16
- Median
- 0.90
- Q1
- 0.65
- NEE
- 0.54
- Min
- 0.33
Debt / Equity (MRQ)
Both American Electric Power (AEP) at 1.57 and NextEra Energy (NEE) at 1.57 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
AEP
Utilities industry group
1.57
- Max
- 3.02
- Q3
- 1.81
- AEP
- 1.57
- Median
- 1.34
- Q1
- 0.85
- Min
- 0.00
NEE
Utilities industry group
1.57
- Max
- 3.02
- Q3
- 1.81
- NEE
- 1.57
- Median
- 1.34
- Q1
- 0.85
- Min
- 0.00
Financial Strength at a Glance
| Metric | AEP | NEE |
|---|---|---|
| Current Ratio (MRQ) | 0.53 | 0.54 |
| Debt / Equity (MRQ) | 1.57 | 1.57 |
| Net Debt / EBITDA | 5.61 | 7.23 |
Dividends
Dividend Yield (TTM)
Both American Electric Power (AEP) at 2.81% and NextEra Energy (NEE) at 2.69% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AEP
Utilities industry group
2.81%
- Max
- 5.96%
- Q3
- 3.78%
- Median
- 2.89%
- AEP
- 2.81%
- Q1
- 1.90%
- Min
- 0.00%
NEE
Utilities industry group
2.69%
- Max
- 5.96%
- Q3
- 3.78%
- Median
- 2.89%
- NEE
- 2.69%
- Q1
- 1.90%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both American Electric Power (AEP) at 55.62% and NextEra Energy (NEE) at 58.95% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.
AEP
Utilities industry group
55.62%
- Max
- 116.67%
- Q3
- 73.40%
- Median
- 58.69%
- AEP
- 55.62%
- Q1
- 36.87%
- Min
- 0.00%
NEE
Utilities industry group
58.95%
- Max
- 116.67%
- Q3
- 73.40%
- NEE
- 58.95%
- Median
- 58.69%
- Q1
- 36.87%
- Min
- 0.00%
Dividends at a Glance
| Metric | AEP | NEE |
|---|---|---|
| Dividend Yield (TTM) | 2.81% | 2.69% |
| Dividend Payout Ratio (TTM) | 55.62% | 58.95% |
Valuation
P/E Ratio (TTM)
Both American Electric Power (AEP) at 19.96 and NextEra Energy (NEE) at 22.24 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.
AEP
Utilities industry group
19.96
- Max
- 33.40
- Q3
- 23.70
- Median
- 20.38
- AEP
- 19.96
- Q1
- 16.39
- Min
- 6.27
NEE
Utilities industry group
22.24
- Max
- 33.40
- Q3
- 23.70
- NEE
- 22.24
- Median
- 20.38
- Q1
- 16.39
- Min
- 6.27
P/S Ratio (TTM)
American Electric Power (AEP) at 3.27 prices around its industry’s typical P/S ratio, while NextEra Energy (NEE) at 6.56 clears its benchmark range — NEE looks notably rich on sales.
AEP
Utilities industry group
3.27
- Max
- 6.24
- Q3
- 3.60
- AEP
- 3.27
- Median
- 2.74
- Q1
- 1.67
- Min
- 0.00
NEE
Utilities industry group
6.56
- NEE
- 6.56
- Max
- 6.24
- Q3
- 3.60
- Median
- 2.74
- Q1
- 1.67
- Min
- 0.00
P/B Ratio (MRQ)
American Electric Power (AEP) at 2.31 is valued about in line with its industry on P/B ratio, while NextEra Energy (NEE) at 3.31 carries an above-peer premium to book — NEE is pricier on assets.
AEP
Utilities industry group
2.31
- Max
- 3.56
- Q3
- 2.44
- AEP
- 2.31
- Median
- 1.90
- Q1
- 1.45
- Min
- 0.34
NEE
Utilities industry group
3.31
- Max
- 3.56
- NEE
- 3.31
- Q3
- 2.44
- Median
- 1.90
- Q1
- 1.45
- Min
- 0.34
Valuation at a Glance
| Metric | AEP | NEE |
|---|---|---|
| P/E Ratio (TTM) | 19.96 | 22.24 |
| P/S Ratio (TTM) | 3.27 | 6.56 |
| P/B Ratio (MRQ) | 2.31 | 3.31 |
| Free Cash Flow Yield (TTM) | -9.47% | -10.10% |