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).

Total return — AEP vs NEE

growth of $100 · last 30y
AEP +221.1%NEE +1510.3%NEE compounded faster
Log scale — wide-divergence pair
101001k10kStart $100200120062011201620212026$321$1,610
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 7

It depends on what you're optimizing for:

ValueAEP(lower P/E)
GrowthNEE(faster 5Y revenue CAGR)
IncomeAEP(higher dividend yield)
QualityAEP(higher ROIC)

Valuation

MetricAEPNEE
P/E ratio19.0921.88
Forward P/E18.8619.50
P/S ratio3.196.37
P/B ratio2.223.25
PEG ratio0.881.26
EV / EBITDA14.0516.38
FCF yield8.73%1.32%

Profitability

MetricAEPNEE
Gross margin40.39%67.32%
Operating margin23.47%29.20%
Net margin16.49%29.03%
ROE11.49%14.82%
ROIC4.71%4.23%

Dividends

MetricAEPNEE
Dividend yield2.93%2.77%
Payout ratio56.76%71.89%

Growth (annualized)

MetricAEPNEE
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.

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.