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 | 69.60 billion USD | 181.31 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AEP | NEE |
|---|---|---|
| Total Return (1Y) | 16.58% | 25.86% |
| Total Return (3Y, Annualized) | 19.01% | 9.02% |
| Total Return (5Y, Annualized) | 11.69% | 4.94% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AEP | NEE |
|---|---|---|
| Volatility (1Y, Annualized) | 18.86% | 21.99% |
| Beta (5Y) | 0.52 | 0.66 |
| Max Drawdown (5Y) | -29.56% | -44.97% |
| Avg. Volume (3M) | 5.03M | 11.73M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AEP | NEE |
|---|---|---|
| Sharpe Ratio (1Y) | 0.66 | 0.99 |
| Sortino Ratio (1Y) | 1.03 | 1.51 |
Profitability
ROE (TTM)
Both American Electric Power (AEP) at 10.13% and NextEra Energy (NEE) at 11.68% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.
AEP
Utilities industry group
10.13%
- Max
- 17.16%
- Q3
- 11.74%
- AEP
- 10.13%
- Median
- 9.47%
- Q1
- 7.66%
- Min
- 2.67%
NEE
Utilities industry group
11.68%
- Max
- 17.16%
- Q3
- 11.74%
- NEE
- 11.68%
- Median
- 9.47%
- Q1
- 7.66%
- Min
- 2.67%
Net Margin (TTM)
NextEra Energy (NEE) at 32.40% converts revenue to bottom-line profit above its industry’s benchmark range, while American Electric Power (AEP) at 13.78% keeps roughly the typical share for its industry.
AEP
Utilities industry group
13.78%
- Max
- 27.58%
- Q3
- 17.19%
- AEP
- 13.78%
- Median
- 12.61%
- Q1
- 9.24%
- Min
- -1.02%
NEE
Utilities industry group
32.40%
- NEE
- 32.40%
- Max
- 27.58%
- Q3
- 17.19%
- Median
- 12.61%
- Q1
- 9.24%
- Min
- -1.02%
Operating Margin (TTM)
NextEra Energy (NEE) at 31.52% operates in the top operating margin quartile, ahead of American Electric Power (AEP) at 23.25%, which runs around its industry’s norm.
AEP
Utilities industry group
23.25%
- Max
- 43.52%
- Q3
- 30.50%
- Median
- 23.72%
- AEP
- 23.25%
- Q1
- 17.21%
- Min
- 0.00%
NEE
Utilities industry group
31.52%
- Max
- 43.52%
- NEE
- 31.52%
- Q3
- 30.50%
- Median
- 23.72%
- Q1
- 17.21%
- Min
- 0.00%
Profitability Metrics
| Metric | AEP | NEE |
|---|---|---|
| ROE (TTM) | 10.13% | 11.68% |
| ROA (TTM) | 2.98% | 2.44% |
| Net Margin (TTM) | 13.78% | 32.40% |
| Operating Margin (TTM) | 23.25% | 31.52% |
| Gross Margin (TTM) | 46.36% | 61.02% |
Growth
Revenue Growth
Both American Electric Power (AEP) at 10.93% and NextEra Energy (NEE) at 10.74% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both American Electric Power (AEP) at 19.35% and NextEra Energy (NEE) at -2.63% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | AEP | NEE |
|---|---|---|
| Revenue Growth (YoY) | 10.93% | 10.74% |
| Revenue Growth (3Y CAGR) | 3.66% | 9.36% |
| 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 0.50 and NextEra Energy (NEE) at 0.53 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.
AEP
Utilities industry group
0.50
- Max
- 1.74
- Q3
- 1.19
- Median
- 0.93
- Q1
- 0.66
- AEP
- 0.50
- Min
- 0.32
NEE
Utilities industry group
0.53
- Max
- 1.74
- Q3
- 1.19
- Median
- 0.93
- Q1
- 0.66
- NEE
- 0.53
- Min
- 0.32
Debt / Equity (MRQ)
Both American Electric Power (AEP) at 1.61 and NextEra Energy (NEE) at 1.62 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
AEP
Utilities industry group
1.61
- Max
- 2.60
- Q3
- 1.79
- AEP
- 1.61
- Median
- 1.33
- Q1
- 0.85
- Min
- 0.00
NEE
Utilities industry group
1.62
- Max
- 2.60
- Q3
- 1.79
- NEE
- 1.62
- Median
- 1.33
- Q1
- 0.85
- Min
- 0.00
Financial Strength Metrics
| Metric | AEP | NEE |
|---|---|---|
| Current Ratio (MRQ) | 0.50 | 0.53 |
| Debt / Equity (MRQ) | 1.61 | 1.62 |
| Net Debt / EBITDA | 5.86 | 7.35 |
Dividends
Dividend Yield (TTM)
Both American Electric Power (AEP) at 1.47% and NextEra Energy (NEE) at 2.71% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
AEP
Utilities industry group
1.47%
- Max
- 6.00%
- Q3
- 3.74%
- Median
- 2.89%
- AEP
- 1.47%
- Q1
- 1.42%
- Min
- 0.00%
NEE
Utilities industry group
2.71%
- Max
- 6.00%
- Q3
- 3.74%
- Median
- 2.89%
- NEE
- 2.71%
- Q1
- 1.42%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both American Electric Power (AEP) at 65.51% and NextEra Energy (NEE) at 53.47% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.
AEP
Utilities industry group
65.51%
- Max
- 108.09%
- Q3
- 72.14%
- AEP
- 65.51%
- Median
- 58.54%
- Q1
- 37.81%
- Min
- 0.00%
NEE
Utilities industry group
53.47%
- Max
- 108.09%
- Q3
- 72.14%
- Median
- 58.54%
- NEE
- 53.47%
- Q1
- 37.81%
- Min
- 0.00%
Dividend Metrics
| Metric | AEP | NEE |
|---|---|---|
| Dividend Yield (TTM) | 1.47% | 2.71% |
| Dividend Payout Ratio (TTM) | 65.51% | 53.47% |
Valuation
P/E Ratio (TTM)
Both American Electric Power (AEP) at 22.16 and NextEra Energy (NEE) at 19.53 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
22.16
- Max
- 31.65
- Q3
- 23.25
- AEP
- 22.16
- Median
- 21.07
- Q1
- 16.52
- Min
- 6.64
NEE
Utilities industry group
19.53
- Max
- 31.65
- Q3
- 23.25
- Median
- 21.07
- NEE
- 19.53
- Q1
- 16.52
- Min
- 6.64
P/S Ratio (TTM)
American Electric Power (AEP) at 3.05 is priced about in line with its industry on P/S ratio, while NextEra Energy (NEE) at 6.32 sits in the pricier quartile — NEE costs more per dollar of sales.
AEP
Utilities industry group
3.05
- Max
- 6.35
- Q3
- 3.58
- AEP
- 3.05
- Median
- 2.63
- Q1
- 1.61
- Min
- 0.00
NEE
Utilities industry group
6.32
- Max
- 6.35
- NEE
- 6.32
- Q3
- 3.58
- Median
- 2.63
- Q1
- 1.61
- Min
- 0.00
P/B Ratio (MRQ)
American Electric Power (AEP) at 2.17 is valued about in line with its industry on P/B ratio, while NextEra Energy (NEE) at 3.28 carries an above-peer premium to book — NEE is pricier on assets.
AEP
Utilities industry group
2.17
- Max
- 3.28
- Q3
- 2.31
- AEP
- 2.17
- Median
- 1.85
- Q1
- 1.40
- Min
- 0.35
NEE
Utilities industry group
3.28
- NEE
- 3.28
- Max
- 3.28
- Q3
- 2.31
- Median
- 1.85
- Q1
- 1.40
- Min
- 0.35
Valuation Metrics
| Metric | AEP | NEE |
|---|---|---|
| P/E Ratio (TTM) | 22.16 | 19.53 |
| P/S Ratio (TTM) | 3.05 | 6.32 |
| P/B Ratio (MRQ) | 2.17 | 3.28 |
| Free Cash Flow Yield (TTM) | -8.59% | -9.80% |