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LIVE
NEE
NextEra Energy, Inc. · Utilities
$83.65
-6.44% this month
VERSUS
COMPARE
AEP
American Electric Power Company, Inc. · Utilities
$120.94
-9.12% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
NEE
3
AEP
2
Comparison scoreboard
NEE LEADS 3/5AI Score
NEE ✓50.5
AEP 41.5
1Y Return
NEE ✓+9.81%
AEP +6.51%
Fwd P/E
NEE 19.52
AEP ✓18.33
Target Up.
NEE +14.28%
AEP ✓+15.41%
Op. Margin
NEE ✓31.52%
AEP 23.25%
Metrics last refreshed: 8/22/2026
Quick take
NEE vs AEP: Renewable Energy Leader vs Regulated Transmission Backbone: AI Score, Valuation, Performance and Upside
NextEra Energy is the premium utility stock combining regulated Florida utility earnings with the world's largest renewable energy development platform. American Electric Power offers the nation's largest transmission network with steady rate base growth and a higher dividend yield. NEE is the growth-oriented utility with clean energy optionality; AEP is the infrastructure-focused income play with transmission scale advantages.
This NEE vs AEP comparison highlights two different approaches to utility investing: NextEra's dual-platform growth model powered by renewable energy, and AEP's infrastructure-first strategy anchored by the nation's largest transmission grid. The right choice depends on whether you prioritize growth or yield.
Live analysis · updated 8/22/2026
NEE holds the edge across 3 of 5 key metrics in this comparison. NEE has delivered stronger 1-year price return (+9.81% vs +6.51%), though AEP has the better forward P/E setup (18.33x vs 19.52x for NEE). NEE leads on both revenue growth (12.40%) and operating margin (31.52%), suggesting a stronger fundamental setup on both dimensions. Analyst consensus implies similar upside for both: +14.28% for NEE and +15.41% for AEP.
Normalized 1Y performance
NEE
AEP
Recent returns
NEE
AEP
Analyst price targets & sentiment
NEE · 20 analysts
STRONG BUYHOLDSTRONG SELL
Buy (2.2/5.0)
Price target range
analyst low$52.00
analyst high$103.00
analyst mean$98.50
current price$83.65
+14.3% upside to analyst mean
AEP
Price target range
analyst mean$144.95
current price$120.94
+15.4% upside to analyst mean
Who should consider this stock?
NEE may suit investors who:
- Want the largest renewable energy growth platform in the utility sector within a single stock
- Prefer a dual-model utility combining regulated earnings stability with competitive clean energy upside
- Believe wind, solar, and energy storage development will drive above-peer earnings and dividend growth
- Are willing to accept a premium valuation for a utility with a differentiated growth profile
AEP may suit investors who:
- Want exposure to the nation's largest transmission network — a critical, long-lived infrastructure asset
- Prefer a higher current dividend yield around 3.4% versus NEE's lower yield near 2.6%
- Value the predictability of a pure regulated utility model without competitive generation exposure
- Believe transmission and distribution investment will be a durable growth driver as the grid modernizes
Performance & AI score
| Metric | NEE | AEP |
|---|---|---|
| AI score | 50.5 | 41.5 |
| AI rank | #431 | #930 |
| Latest close | $83.65 | $120.94 |
| 1M return | -6.44% | -9.12% |
| 6M return | -8.72% | -5.82% |
| 1Y return | +9.81% | +6.51% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | NEE | AEP |
|---|---|---|
| 1Y ago | $11K (+10.0%) started 2025-08-21 | $10.69K (+6.9%) started 2025-08-21 |
| 5Y ago | $12.03K (+20.3%) started 2021-08-23 | $17.96K (+79.6%) started 2021-08-23 |
| 10Y ago | $42.47K (+324.7%) started 2016-08-22 | $35.67K (+256.7%) started 2016-08-22 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | NEE | AEP |
|---|---|---|
| Market cap | $179.79B | $68.38B |
| Trailing P/E | 19.37 | 108.28 |
| Forward P/E | 19.52 | 18.33 |
| Price/Sales | 5.88 | N/A |
| EV/Revenue | 10.39 | 5.38 |
| Analyst target | $98.50 | $144.95 |
| Target upside | +14.28% | +15.41% |
Growth, profitability & risk
| Metric | NEE | AEP |
|---|---|---|
| Revenue growth | 12.40% | 7.00% |
| Earnings growth | 53.10% | -43.20% |
| EPS growth | +53.10% | -43.20% |
| FCF margin | -61.91% | -26.31% |
| Operating margin | 31.52% | 23.25% |
| Profit margin | 32.40% | 13.78% |
| ROIC proxy | 11.68% | 10.13% |
| Return on equity | 11.68% | 10.13% |
| Dividend yield | 2.89% | 3.03% |
| Beta | 0.65 | 0.51 |
| Debt/equity | 161.68 | 160.79 |
| Current ratio | 0.53 | 0.50 |
| Quick ratio | 0.35 | 0.28 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
NEE max drawdown14.54%
AEP max drawdown12.80%
NEE max wkly drop6.94%
AEP max wkly drop5.95%
5Y risk snapshot
NEE max drawdown44.97%
AEP max drawdown29.56%
NEE max wkly drop22.71%
AEP max wkly drop11.71%
10Y risk snapshot
NEE max drawdown44.97%
AEP max drawdown32.91%
NEE max wkly drop24.36%
AEP max wkly drop21.00%
Performance metrics by period
| Period | Metric | NEE | AEP |
|---|---|---|---|
| 1Y | Growth | +9.95% | +6.89% |
| CAGR | +9.96% | +6.90% | |
| Sharpe ratio | 0.34 | 0.21 | |
| Max drawdown | 14.54% | 12.80% | |
| Max daily drop | 4.63% | 3.79% | |
| Max wkly drop | 6.94% | 5.95% | |
| 5Y | Growth | +8.97% | +54.53% |
| CAGR | +1.74% | +9.10% | |
| Sharpe ratio | 0.03 | 0.31 | |
| Max drawdown | 44.97% | 29.56% | |
| Max daily drop | 8.97% | 5.34% | |
| Max wkly drop | 22.71% | 11.71% | |
| 10Y | Growth | +232.97% | +148.23% |
| CAGR | +12.79% | +9.52% | |
| Sharpe ratio | 0.42 | 0.32 | |
| Max drawdown | 44.97% | 32.91% | |
| Max daily drop | 13.42% | 11.58% | |
| Max wkly drop | 24.36% | 21.00% |
Business comparison
| Category | NEE | AEP |
|---|---|---|
| Company | NextEra Energy, Inc. | American Electric Power Company, Inc. |
| Sector | Utilities | Utilities |
| Industry | Utilities - Regulated Electric | N/A |
| Core business | Largest electric utility in the US by market capitalization, combining a regulated utility (Florida Power & Light) with the world's largest wind and solar generation business (NextEra Energy Resources). The dual platform model blends regulated earnings stability with competitive clean energy growth. | One of the largest electric utilities in the US, operating the nation's largest transmission network across 11 states. Serves 5.6 million customers through regulated utility subsidiaries with a focus on transmission and distribution infrastructure investment. |
| Investor focus | Renewable energy development pipeline at Energy Resources, FPL rate base growth and regulatory outcomes, contracted backlog visibility, energy storage deployments, and dividend growth trajectory. | Transmission investment and rate base growth, regulatory outcomes across 11 states, data center load growth in key service territories, dividend yield sustainability, and asset portfolio simplification. |
NEE strengths
- World's largest generator of wind and solar energy with an unmatched development pipeline and operating scale
- Florida Power & Light provides a stable regulated earnings base in a constructive regulatory jurisdiction
- Dual platform model offers both utility predictability and renewable energy growth in a single stock
AEP strengths
- Operates the largest electricity transmission network in the US — a critical infrastructure asset with long-lived, predictable returns
- Multi-state regulated platform with a large capital investment plan driving consistent rate base growth
- Higher dividend yield around 3.4% appeals to income-focused investors seeking utility sector exposure
Risks to watch — NEE
- Rising interest rates increase the cost of capital for renewable energy project development and compress project returns
- Policy risk from potential changes to renewable energy tax credits including the IRA framework
- Premium valuation relative to utility peers requires sustained execution on both the regulated and competitive sides
Risks to watch — AEP
- Multi-state regulatory complexity with 11 jurisdictions creates risk of unfavorable rate case outcomes
- Transmission investment returns depend on FERC regulatory policies and allowed return on equity formulas
- Asset portfolio simplification (divestitures of non-core businesses) creates near-term earnings transition risk
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