American Electric Power Company, Inc. (AEP) vs NextEra Energy, Inc. (NEE)

A side-by-side comparison of American Electric Power Company, Inc. and NextEra Energy, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 10, 2026. Differences are shown without an overall score or investment verdict.

Compare

Total returnAEP vs NEE

growth of $100 · dividends reinvested · last 10y
AEP +170.2% (+10.5%/yr)NEE +245.2% (+13.2%/yr)NEE compounded faster over this window
100200300400Start $10020182020202220242026$270$345
AEP NEE

AEP vs NEE: by the numbers

  • NEE is the larger company ($171.70B vs $67.14B market cap).
  • NEE trades at the lower trailing earnings multiple (18.46 vs 21.34 P/E), one valuation lens rather than an overall verdict.
  • NEE converts more revenue to profit (32.04% vs 13.95% net margin).
  • NEE grew revenue faster over the past five years (11.51% vs 7.40% CAGR).
  • AEP pays the higher dividend yield (3.08% vs 2.95%).

Metrics side by side

Valuation

MetricAEPNEE
P/E ratio21.3418.46
Forward P/E19.3320.42
P/S ratio2.985.92
P/B ratio2.093.01
EV / EBITDA12.0217.65

Profitability

MetricAEPNEE
Gross margin31.81%62.80%
Operating margin28.36%29.49%
Net margin13.95%32.04%
ROE9.77%16.28%
ROIC5.13%3.98%

Dividends

MetricAEPNEE
Dividend yield3.08%2.95%
Payout ratio65.74%54.62%

Growth (annualized)

MetricAEPNEE
Revenue CAGR (5Y)7.40%11.51%
EPS CAGR (5Y)8.45%17.31%
FCF CAGR (5Y)N/A70.34%
Total return CAGR (5Y)10.71%2.11%

Frequently asked

Which has the lower trailing P/E, AEP or NEE?
NEE has the lower trailing P/E: AEP trades at 21.34 and NEE at 18.46. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, AEP or NEE?
Over the past five years, NEE grew revenue faster — AEP at a 7.40% CAGR versus NEE at 11.51%.
Does AEP or NEE pay a bigger dividend?
AEP yields 3.08% and NEE yields 2.95% based on trailing dividends and the latest price.
Is AEP or NEE more profitable?
NEE runs the higher net margin — AEP at 13.95% versus NEE at 32.04%.
How have AEP and NEE total returns compared?
Over the past 10 years, AEP delivered 10.64% and NEE delivered 13.41% annualized total return. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 10, 2026.