WallStSmart

American Electric Power Co Inc (AEP)vsNextera Energy Inc (NEE)

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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

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 3.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.69

NEE

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AEPSignificantly Overvalued (-88.4%)

Margin of Safety

-88.4%

Fair Value

$69.11

Current Price

$129.86

$60.75 premium

UndervaluedFair: $69.11Overvalued

Intrinsic value data unavailable for NEE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AEP3 strengths · Avg: 8.3/10
Market CapQuality
$70.90B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

NEE6 strengths · Avg: 9.2/10
Profit MarginProfitability
40.4%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
33.0%10/10

Strong operational efficiency at 33.0%

EPS GrowthGrowth
93.2%10/10

Earnings expanding 93.2% YoY

Market CapQuality
$175.57B9/10

Large-cap with strong market position

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

AEP4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.663/10

Elevated debt levels

PEG RatioValuation
2.822/10

Expensive relative to growth rate

Free Cash FlowQuality
$-969.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

NEE4 concerns · Avg: 3.5/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

Debt/EquityHealth
1.853/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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.

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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.

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