American Electric Power Co Inc (AEP)vsNextera Energy Inc (NEE)
AEP
American Electric Power Co Inc
$134.66
-1.64%
UTILITIES · Cap: $73.20B
NEE
Nextera Energy Inc
$95.51
-0.92%
UTILITIES · Cap: $202.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 27% more annual revenue ($27.87B vs $21.88B). NEE leads profitability with a 29.4% profit margin vs 16.4%. NEE appears more attractively valued with a PEG of 2.14. NEE earns a higher WallStSmart Score of 68/100 (B-).
AEP
Buy60
out of 100
Grade: C+
NEE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.4%
Fair Value
$77.18
Current Price
$134.66
$57.48 premium
Intrinsic value data unavailable for NEE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 22.8%
Mega-cap, among the largest globally
Strong operational efficiency at 30.2%
Earnings expanding 160.0% YoY
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Earnings declined 12.6%
Negative free cash flow — burning cash
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 22.8%. Revenue growth of 13.2% demonstrates continued momentum.
Bull Case : NEE
The strongest argument for NEE centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 29.4% and operating margin at 30.2%.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
NEE carries more volatility with a beta of 0.73 — expect wider price swings.
AEP is growing revenue faster at 13.2% — sustainability is the question.
AEP generates stronger free cash flow (-246M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NEE scores higher overall (68/100 vs 60/100), backed by strong 29.4% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
American Electric Power Co Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
American Electric Power (AEP) is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.
Visit Website →Nextera Energy Inc
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
NextEra Energy, Inc. is an American energy company with about 46 gigawatts of generating capacity, revenues of over $17 billion in 2017, and about 14,000 employees throughout the US and Canada. Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources, NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.
Visit Website →Compare with Other UTILITIES - REGULATED ELECTRIC Stocks
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