Constellation Energy vs American Electric Power: Which Stock Could Rally?
Constellation Energy surged 12% during the past Week. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer American Electric Power gives you more. American Electric Power (AEP) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Constellation Energy (CEG) stock, suggesting you may be better off investing in AEP
- AEP’s quarterly revenue growth was 13.2%, vs. CEG’s 12.9%.
- In addition, its Last 12 Months revenue growth came in at 10.9%, ahead of CEG’s 8.3%.
- AEP leads on profitability over both periods – LTM margin of 24.6% and 3-year average of 22.3%.
These differences become even clearer when you look at the financials side by side. The table highlights how CEG’s fundamentals stack up against those of AEP on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CEG | AEP | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 33.1 | 13.3 | AEP |
| Revenue Growth | |||
| Last Quarter | 12.9% | 13.2% | AEP |
| Last 12 Months | 8.3% | 10.9% | AEP |
| Last 3 Year Average | 1.6% | 3.8% | AEP |
| Operating Margins | |||
| Last 12 Months | 12.2% | 24.6% | AEP |
| Last 3 Year Average | 12.0% | 22.3% | AEP |
| Momentum | |||
| Last 3 Year Return | 329.9% | 66.3% | AEP |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CEG Revenue Comparison | AEP Revenue Comparison
See more margin details: CEG Operating Income Comparison | AEP Operating Income Comparison
See detailed fundamentals on Buy or Sell AEP Stock and Buy or Sell CEG Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CEG Return | – | 64% | 37% | 93% | 59% | -8% | 531% | <=== | |
| AEP Return | 11% | 10% | -11% | 18% | 29% | 15% | 92% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 84% | ||
| Monthly Win Rates [3] | |||||||||
| CEG Win Rate | – | 73% | 67% | 67% | 58% | 50% | 63% | ||
| AEP Win Rate | 50% | 67% | 58% | 58% | 67% | 100% | 67% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | 62% | ||
| Max Drawdowns [4] | |||||||||
| CEG Max Drawdown | – | -19% | -15% | -5% | -23% | -30% | -18% | ||
| AEP Max Drawdown | -9% | -6% | -23% | -5% | -2% | -1% | -8% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/27/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read AEP Dip Buyer Analyses and CEG Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about CEG or AEP? Consider portfolio approach.
Portfolios Beat Stock Picking
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains and reduces single stock risk.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.