American Electric Power Company, Inc. (AEP) vs NextEra Energy, Inc. (NEE)
AEP leads on 10 of 17 compared metrics.
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 June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
AEP
American Electric Power Company, Inc.
$129.23Utilities
NEE
NextEra Energy, Inc.
$85.99Utilities
Total return — AEP vs NEE
growth of $100 · last 30yAEP +221.1%NEE +1510.3%NEE compounded faster
Log scale — wide-divergence pair
AEP NEE
AEP vs NEE: by the numbers
- •NEE is the larger company ($179.32B vs $70.31B market cap).
- •AEP trades at the lower earnings multiple (19.09 vs 21.88 P/E).
- •NEE converts more revenue to profit (29.03% vs 16.49% net margin).
- •NEE grew revenue faster over the past five years (10.50% vs 7.51% CAGR).
- •AEP pays the higher dividend yield (2.93% vs 2.77%).
Which is better, AEP or NEE?
Metric tally: AEP 10 · NEE 7It depends on what you're optimizing for:
ValueAEP(lower P/E)
GrowthNEE(faster 5Y revenue CAGR)
IncomeAEP(higher dividend yield)
QualityAEP(higher ROIC)
Valuation
| Metric | AEP | NEE |
|---|---|---|
| P/E ratio | 19.09● | 21.88 |
| Forward P/E | 18.86● | 19.50 |
| P/S ratio | 3.19● | 6.37 |
| P/B ratio | 2.22● | 3.25 |
| PEG ratio | 0.88● | 1.26 |
| EV / EBITDA | 14.05● | 16.38 |
| FCF yield | 8.73%● | 1.32% |
Profitability
| Metric | AEP | NEE |
|---|---|---|
| Gross margin | 40.39% | 67.32%● |
| Operating margin | 23.47% | 29.20%● |
| Net margin | 16.49% | 29.03%● |
| ROE | 11.49% | 14.82%● |
| ROIC | 4.71%● | 4.23% |
Dividends
| Metric | AEP | NEE |
|---|---|---|
| Dividend yield | 2.93%● | 2.77% |
| Payout ratio | 56.76% | 71.89% |
Growth (annualized)
| Metric | AEP | NEE |
|---|---|---|
| Revenue CAGR (5Y) | 7.51% | 10.50%● |
| EPS CAGR (5Y) | 8.45% | 17.31%● |
| FCF CAGR (5Y) | 38.55% | 65.74%● |
| Total return CAGR (5Y) | 12.78%● | 5.93% |
Frequently asked
- Which is better, AEP or NEE?
- It depends on your goal. value: AEP (lower P/E); growth: NEE (faster 5Y revenue CAGR); income: AEP (higher dividend yield); quality: AEP (higher ROIC). Across all compared metrics, AEP leads 10 to 7.
- Is AEP or NEE cheaper?
- On trailing earnings, AEP is cheaper: AEP trades at a 19.09 P/E and NEE at 21.88.
- Which has grown faster, AEP or NEE?
- Over the past five years, NEE grew revenue faster — AEP at a 7.51% CAGR versus NEE at 10.50%.
- Does AEP or NEE pay a bigger dividend?
- AEP yields 2.93% and NEE yields 2.77% based on trailing dividends and the latest price.
- Is AEP or NEE more profitable?
- NEE runs the higher net margin — AEP at 16.49% versus NEE at 29.03%.
- Which has been the better investment, AEP or NEE?
- Over the past 10-year, NEE delivered the higher annualized total return — AEP at 10.61% versus NEE at 13.61%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
American Electric Power P/E ratioNextEra Energy P/E ratioAmerican Electric Power dividend yieldNextEra Energy dividend yieldAmerican Electric Power ROENextEra Energy ROEAmerican Electric Power operating marginNextEra Energy operating marginAmerican Electric Power revenue growthNextEra Energy revenue growthAmerican Electric Power free cash flowNextEra Energy free cash flow
American Electric Power & NextEra Energy appear in these rankings
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 June 13, 2026.