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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.

Company profile comparison for American Electric Power (AEP) and NextEra Energy (NEE)
Profile ItemAEPNEE
NameAmerican Electric Power Company, Inc.NextEra Energy, Inc.
Country/RegionUnited StatesUnited States
GICS SectorUtilitiesUtilities
GICS Industry GroupUtilitiesUtilities
GICS IndustryElectric UtilitiesElectric Utilities
GICS Sub-IndustryElectric UtilitiesElectric Utilities
Market Capitalization73.43 billion USD182.74 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962February 21, 1973
Security TypeCommon StockCommon Stock

Performance

Cumulative Growth

AEP
NEE
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American Electric Power (AEP) vs. NextEra Energy (NEE): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for American Electric Power (AEP) and NextEra Energy (NEE). Returns over one year are annualized.

Performance at a Glance

Performance metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
Total Return (1Y)34.81%26.27%

Risk

Drawdown

AEP
NEE
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American Electric Power (AEP) vs. NextEra Energy (NEE): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
Volatility (1Y, Annualized)18.56%23.61%
Beta (5Y)0.510.67
Avg. Volume (3M)4.18M10.69M

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%
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their ROE against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their net margin against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their operating margin against the Utilities industry group benchmark.

Profitability at a Glance

Profitability metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
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

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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
Revenue Growth (YoY)10.93%10.74%
Revenue Growth (3Y CAGR)3.66%9.36%

EPS Growth

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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
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
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their current ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their debt-to-equity ratio against the Utilities industry group benchmark.

Financial Strength at a Glance

Financial strength metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
Current Ratio (MRQ)0.530.54
Debt / Equity (MRQ)1.571.57
Net Debt / EBITDA5.617.23

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%
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their dividend yield against the Utilities industry group benchmark.

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%
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their payout ratio against the Utilities industry group benchmark.

Dividends at a Glance

Dividend metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
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
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their P/E ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their P/S ratio against the Utilities industry group benchmark.

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
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American Electric Power (AEP) vs. NextEra Energy (NEE): A comparison of their P/B ratio against the Utilities industry group benchmark.

Valuation at a Glance

Valuation metrics for American Electric Power (AEP) and NextEra Energy (NEE)
MetricAEPNEE
P/E Ratio (TTM)19.9622.24
P/S Ratio (TTM)3.276.56
P/B Ratio (MRQ)2.313.31
Free Cash Flow Yield (TTM)-9.47%-10.10%