American Electric Power Company, Inc. (AEP) vs NextEra Energy, Inc. (NEE)

American Electric Power Company, Inc. and NextEra Energy, Inc. are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $64.1B — 2.5× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 20.3×. NextEra Energy, Inc. grew revenue faster over the last twelve months: 10.8% against 10.3%. NextEra Energy, Inc. has the higher net margin (32.4% vs 13.8%) and the lower return on invested capital (3.05% vs 3.83%). Both pay a dividend; American Electric Power Company, Inc. yields more (4.44% vs 3.63%). Across the 22 metrics below, American Electric Power Company, Inc. leads on 11 and NextEra Energy, Inc. on 11.

Valuation

Metric AEP NEE Utilities Regulated Electric median
P/E 20.30 17.11 18.84
P/S 2.83 5.53 2.52
P/B 1.93 2.33 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.15 16.83 11.82
EV/Sales 5.11 9.27 4.58
Earnings yield 4.93% 5.84% 5.30%
Free cash flow yield (3.81%) (10.44%) (5.06%)

Profitability

Metric AEP NEE Utilities Regulated Electric median
Gross margin 67.72% 81.54% 66.28%
Operating margin 23.00% 29.82% 21.79%
Net margin 13.78% 32.40% 12.94%
Free cash flow margin (10.78%) (57.72%) (11.51%)
Return on equity 9.78% 14.42% 9.75%
Return on assets 2.74% 4.31% 2.75%
Return on invested capital 3.83% 3.05% 3.87%

Growth

Metric AEP NEE Utilities Regulated Electric median
Revenue growth (TTM) 10.28% 10.81% 7.43%
EPS growth (last fiscal year) 19.64% (2.08%) —
Revenue growth, 5-year CAGR 7.96% 8.78% 6.75%
Net income growth, 5-year CAGR 10.23% 18.55% 6.44%

Health

Metric AEP NEE Utilities Regulated Electric median
Debt to equity 1.59 1.62 1.53
Current ratio 0.50 0.53 0.81
Net debt to EBITDA 5.49 6.10 5.25

Dividend

Metric AEP NEE Utilities Regulated Electric median
Dividend yield 4.44% 3.63% 4.33%
Payout ratio 0.85 0.44 0.66

Size

Metric AEP NEE Utilities Regulated Electric median
Market cap 64.06b 158.26b 22.90b

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