COMPARE · Data as of August 21, 2026
AEP vs NRG
Verdict: Side-by-side breakdown using the Bull Rankings model. AEP scored 63.3, NRG scored 60.9 — AEP leads.
Compare another set
AEP
American Electric Power Company, Inc.
63.3
$120.94 · $65.8B
fundamentals as of
Score gap
2.4
AEP leads
NRG
NRG Energy, Inc.
60.9
$113.11 · $23.8B
fundamentals as of
At a glance · who leads each dimension, on the model's own rules
- Fastest growthNRG+12.4%
- Strongest balance sheetAEP1.61
- Highest qualityAEP48 / 100
Side by side · every name on one set of axes
The model, pillar by pillar (0–100 each)
AEP
stronger →← stronger
NRG
48
Qualityreturns · margins · balance sheet
45
84
Growthrevenue & earnings expansion
77
64
Valuevaluation vs sector peers
65
AEP is stronger on 2 of 3 pillars.
Fundamentals, head-to-head
AEP
NRG
-$2.4bF
FCF
$348mC
+10.9%B
Rev
+12.4%B+
1.61C+
D/E
4.83D
2.9xB
P/S
—
2.15C
PEG
0.58A-
—
P/E
29.5xC
Winner per row is the stronger grade; where grades tie, the better figure breaks it. A true tie or a missing value shows no highlight.
Valuation · DCF cross-check
AEP
NRG
—
Price vs fair valuelower is cheaper
239% above
—
Growth the price implies10-yr FCF · lower = less priced in
~48%/yr
—
1-yr DCF upside
-77%
—
5-yr DCF upside
-70%
—
10-yr DCF upside
-56%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
AEP
Why this score
- Short track record
NRG
Why this score
- Raising its dividend
- Diluting shareholders
The companies
AEPAmerican Electric Power Company, Inc.
Why now
Utilities - Regulated Electric · market cap $65.8b. 14% off the 52-week high of $140.58. Revenue growing +11%, comfortably above the S&P median. 20 sell-side analysts rate this a Buy with a mean 1-yr target of $144.20 (implying +19% upside).
Moat
Net margin 14% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 10% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. $65.8b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Free cash flow is negative (-$2.4b) — capital raises or debt issuance likely required; dilution / leverage risk.
NRGNRG Energy, Inc.
Why now
Utilities - Independent Power Producers · market cap $23.8b. Down 40% from 52-week high of $189.96 — deep drawdown territory. Revenue growing +12%, comfortably above the S&P median. PEG 0.58 — paying under fair value for the growth rate. 16 sell-side analysts rate this a Buy with a mean 1-yr target of $188.75 (implying +67% upside).
Moat
ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
D/E 4.83 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Down 40% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Net margin 2.6% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first.
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Where AEP and NRG diverge
On the headline score the gap is 2.4 points in favor of AEP. The widest single difference is Growth, where AEP leads by 6.7 points.
- GrowthAEP 83.9 · NRG 77.2AEP +6.7
- QualityAEP 47.6 · NRG 44.9level
- ValueAEP 63.7 · NRG 65.1level
Pillars run 0–100 against sector peers, so a score is a statement about a company relative to its own industry rather than to the other name here. A wide Value gap usually means the market already prices the difference in quality or growth — which is the trade-off this comparison comes down to.