American Electric Power Co Inc (AEP)vsNextera Energy Inc (NEE)
AEP
American Electric Power Co Inc
$129.86
-0.36%
UTILITIES · Cap: $70.90B
NEE
Nextera Energy Inc
$85.03
-0.82%
UTILITIES · Cap: $175.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 22% more annual revenue ($28.82B vs $23.61B). NEE leads profitability with a 40.4% profit margin vs 14.2%. NEE appears more attractively valued with a PEG of 1.71. NEE earns a higher WallStSmart Score of 70/100 (B-).
AEP
Buy64
out of 100
Grade: C+
NEE
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-88.4%
Fair Value
$69.11
Current Price
$129.86
$60.75 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 26.9%
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 33.0%
Earnings expanding 93.2% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Elevated debt levels
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
1.6% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AEP
The strongest argument for AEP centers on Market Cap, Price/Book, Operating Margin. Revenue growth of 13.7% demonstrates continued momentum.
Bull Case : NEE
The strongest argument for NEE centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 40.4% and operating margin at 33.0%.
Bear Case : AEP
The primary concerns for AEP are Debt/Equity, PEG Ratio, Free Cash Flow. Debt-to-equity of 1.66 is elevated, increasing financial risk.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.85 is elevated, increasing financial risk.
Key Dynamics to Monitor
NEE carries more volatility with a beta of 0.64 — expect wider price swings.
AEP is growing revenue faster at 13.7% — sustainability is the question.
AEP generates stronger free cash flow (-969M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NEE scores higher overall (70/100 vs 64/100), backed by strong 40.4% 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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