AEP vs. NEE, SO, CEG, D, VST, EIX, DTE, ETR, FE, and PPL
Should you be buying American Electric Power stock or one of its competitors? The main competitors of American Electric Power include NextEra Energy (NEE), Southern (SO), Constellation Energy (CEG), Dominion Energy (D), Vistra (VST), Edison International (EIX), DTE Energy (DTE), Entergy (ETR), FirstEnergy (FE), and PPL (PPL). These companies are all part of the "electric services" industry.
NextEra Energy (NYSE:NEE) and American Electric Power (NASDAQ:AEP) are both large-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends, media sentiment, valuation and community ranking.
78.7% of NextEra Energy shares are held by institutional investors. Comparatively, 75.2% of American Electric Power shares are held by institutional investors. 0.2% of NextEra Energy shares are held by company insiders. Comparatively, 0.1% of American Electric Power shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
NextEra Energy currently has a consensus target price of $72.93, indicating a potential downside of 8.86%. American Electric Power has a consensus target price of $88.64, indicating a potential downside of 1.78%. Given NextEra Energy's higher probable upside, analysts clearly believe American Electric Power is more favorable than NextEra Energy.
NextEra Energy has a net margin of 27.62% compared to NextEra Energy's net margin of 14.60%. American Electric Power's return on equity of 11.72% beat NextEra Energy's return on equity.
NextEra Energy has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, American Electric Power has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.
NextEra Energy pays an annual dividend of $2.06 per share and has a dividend yield of 2.6%. American Electric Power pays an annual dividend of $3.52 per share and has a dividend yield of 3.9%. NextEra Energy pays out 56.1% of its earnings in the form of a dividend. American Electric Power pays out 65.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NextEra Energy has increased its dividend for 30 consecutive years and American Electric Power has increased its dividend for 14 consecutive years.
NextEra Energy received 681 more outperform votes than American Electric Power when rated by MarketBeat users. Likewise, 72.29% of users gave NextEra Energy an outperform vote while only 55.71% of users gave American Electric Power an outperform vote.
In the previous week, NextEra Energy had 13 more articles in the media than American Electric Power. MarketBeat recorded 25 mentions for NextEra Energy and 12 mentions for American Electric Power. American Electric Power's average media sentiment score of 1.18 beat NextEra Energy's score of 0.52 indicating that NextEra Energy is being referred to more favorably in the media.
NextEra Energy has higher revenue and earnings than American Electric Power. American Electric Power is trading at a lower price-to-earnings ratio than NextEra Energy, indicating that it is currently the more affordable of the two stocks.
Summary
NextEra Energy beats American Electric Power on 17 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AEP and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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