Regulated Electric
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PPL vs AEE
Revenue, margins, valuation, and 5-year total return — side by side.
Regulated Electric
PPL vs AEE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Regulated Electric | Regulated Electric |
| Market Cap | $27.48B | $30.32B |
| Revenue (TTM) | $9.04B | $8.88B |
| Net Income (TTM) | $1.18B | $1.52B |
| Gross Margin | 39.1% | 51.7% |
| Operating Margin | 23.6% | 24.0% |
| Forward P/E | 18.9x | 20.4x |
| Total Debt | $18.45B | $19.83B |
| Cash & Equiv. | $1.07B | $13M |
PPL vs AEE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| PPL Corporation (PPL) | 100 | 132.0 | +32.0% |
| Ameren Corporation (AEE) | 100 | 146.6 | +46.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PPL vs AEE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
PPL is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 6.9%, EPS growth 33.3%, 3Y rev CAGR 4.6%
- Lower volatility, beta 0.05, Low D/E 85.3%, current ratio 1.14x
- Beta 0.05, yield 2.9%, current ratio 1.14x
AEE carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 16 yrs, beta 0.05, yield 2.6%
- 173.4% 10Y total return vs PPL's 31.7%
- 15.4% revenue growth vs PPL's 6.9%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 15.4% revenue growth vs PPL's 6.9% | |
| Value | Lower P/E (18.9x vs 20.4x) | |
| Quality / Margins | 17.2% margin vs PPL's 13.1% | |
| Stability / Safety | Beta 0.05 vs PPL's 0.05 | |
| Dividends | 2.9% yield, 2-year raise streak, vs AEE's 2.6% | |
| Momentum (1Y) | +13.1% vs PPL's +5.2% | |
| Efficiency (ROA) | 3.2% ROA vs PPL's 2.6%, ROIC 4.7% vs 4.6% |
PPL vs AEE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
PPL vs AEE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
AEE leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PPL and AEE operate at a comparable scale, with $9.0B and $8.9B in trailing revenue. Profitability is closely matched — net margins range from 17.2% (AEE) to 13.1% (PPL).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $9.0B | $8.9B |
| EBITDAEarnings before interest/tax | $3.5B | $3.7B |
| Net IncomeAfter-tax profit | $1.2B | $1.5B |
| Free Cash FlowCash after capex | -$1.4B | -$1.3B |
| Gross MarginGross profit ÷ Revenue | +39.1% | +51.7% |
| Operating MarginEBIT ÷ Revenue | +23.6% | +24.0% |
| Net MarginNet income ÷ Revenue | +13.1% | +17.2% |
| FCF MarginFCF ÷ Revenue | -15.5% | -14.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.8% | +3.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +50.0% | +19.6% |
Valuation Metrics
PPL leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 20.5x trailing earnings, AEE trades at a 11% valuation discount to PPL's 23.1x P/E. On an enterprise value basis, PPL's 12.7x EV/EBITDA is more attractive than AEE's 13.6x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $27.5B | $30.3B |
| Enterprise ValueMkt cap + debt − cash | $44.9B | $50.1B |
| Trailing P/EPrice ÷ TTM EPS | 23.05x | 20.48x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.91x | 20.41x |
| PEG RatioP/E ÷ EPS growth rate | — | 2.31x |
| EV / EBITDAEnterprise value multiple | 12.69x | 13.57x |
| Price / SalesMarket cap ÷ Revenue | 3.04x | 3.45x |
| Price / BookPrice ÷ Book value/share | 1.27x | 2.20x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
PPL leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
AEE delivers a 11.6% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $5 for PPL. PPL carries lower financial leverage with a 0.85x debt-to-equity ratio, signaling a more conservative balance sheet compared to AEE's 1.47x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +5.5% | +11.6% |
| ROA (TTM)Return on assets | +2.6% | +3.2% |
| ROICReturn on invested capital | +4.6% | +4.7% |
| ROCEReturn on capital employed | +5.3% | +4.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 6 |
| Debt / EquityFinancial leverage | 0.85x | 1.47x |
| Net DebtTotal debt minus cash | $17.4B | $19.8B |
| Cash & Equiv.Liquid assets | $1.1B | $13M |
| Total DebtShort + long-term debt | $18.4B | $19.8B |
| Interest CoverageEBIT ÷ Interest expense | 2.64x | 2.61x |
Total Returns (Dividends Reinvested)
Evenly matched — PPL and AEE each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PPL five years ago would be worth $14,690 today (with dividends reinvested), compared to $14,373 for AEE. Over the past 12 months, AEE leads with a +13.1% total return vs PPL's +5.2%. The 3-year compound annual growth rate (CAGR) favors PPL at 11.8% vs AEE's 9.7% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +5.9% | +9.4% |
| 1-Year ReturnPast 12 months | +5.2% | +13.1% |
| 3-Year ReturnCumulative with dividends | +39.9% | +32.1% |
| 5-Year ReturnCumulative with dividends | +46.9% | +43.7% |
| 10-Year ReturnCumulative with dividends | +31.7% | +173.4% |
| CAGR (3Y)Annualised 3-year return | +11.8% | +9.7% |
Risk & Volatility
AEE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
AEE is the less volatile stock with a 0.05 beta — it tends to amplify market swings less than PPL's 0.05 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.05x | 0.05x |
| 52-Week HighHighest price in past year | $40.10 | $115.58 |
| 52-Week LowLowest price in past year | $33.12 | $93.27 |
| % of 52W HighCurrent price vs 52-week peak | +92.0% | +94.8% |
| RSI (14)Momentum oscillator 0–100 | 39.4 | 50.5 |
| Avg Volume (50D)Average daily shares traded | 7.5M | 1.5M |
Analyst Outlook
Evenly matched — PPL and AEE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PPL as "Buy" and AEE as "Hold". Consensus price targets imply 12.7% upside for PPL (target: $42) vs 10.5% for AEE (target: $121). For income investors, PPL offers the higher dividend yield at 2.89% vs AEE's 2.57%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $41.57 | $121.11 |
| # AnalystsCovering analysts | 29 | 22 |
| Dividend YieldAnnual dividend ÷ price | +2.9% | +2.6% |
| Dividend StreakConsecutive years of raises | 2 | 16 |
| Dividend / ShareAnnual DPS | $1.07 | $2.82 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
AEE leads in 2 of 6 categories (Income & Cash Flow, Risk & Volatility). PPL leads in 2 (Valuation Metrics, Profitability & Efficiency). 2 tied.
PPL vs AEE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PPL or AEE a better buy right now?
For growth investors, Ameren Corporation (AEE) is the stronger pick with 15.
4% revenue growth year-over-year, versus 6. 9% for PPL Corporation (PPL). Ameren Corporation (AEE) offers the better valuation at 20. 5x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate PPL Corporation (PPL) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — PPL or AEE?
On trailing P/E, Ameren Corporation (AEE) is the cheapest at 20.
5x versus PPL Corporation at 23. 1x. On forward P/E, PPL Corporation is actually cheaper at 18. 9x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — PPL or AEE?
Over the past 5 years, PPL Corporation (PPL) delivered a total return of +46.
9%, compared to +43. 7% for Ameren Corporation (AEE). Over 10 years, the gap is even starker: AEE returned +173. 4% versus PPL's +31. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PPL or AEE?
By beta (market sensitivity over 5 years), Ameren Corporation (AEE) is the lower-risk stock at 0.
05β versus PPL Corporation's 0. 05β — meaning PPL is approximately 1% more volatile than AEE relative to the S&P 500. On balance sheet safety, PPL Corporation (PPL) carries a lower debt/equity ratio of 85% versus 147% for Ameren Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — PPL or AEE?
By revenue growth (latest reported year), Ameren Corporation (AEE) is pulling ahead at 15.
4% versus 6. 9% for PPL Corporation (PPL). On earnings-per-share growth, the picture is similar: PPL Corporation grew EPS 33. 3% year-over-year, compared to 21. 0% for Ameren Corporation. Over a 3-year CAGR, PPL leads at 4. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PPL or AEE?
Ameren Corporation (AEE) is the more profitable company, earning 16.
5% net margin versus 13. 1% for PPL Corporation — meaning it keeps 16. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PPL leads at 23. 6% versus 23. 0% for AEE. At the gross margin level — before operating expenses — PPL leads at 39. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is PPL or AEE more undervalued right now?
On forward earnings alone, PPL Corporation (PPL) trades at 18.
9x forward P/E versus 20. 4x for Ameren Corporation — 1. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PPL: 12. 7% to $41. 57.
08Which pays a better dividend — PPL or AEE?
All stocks in this comparison pay dividends.
PPL Corporation (PPL) offers the highest yield at 2. 9%, versus 2. 6% for Ameren Corporation (AEE).
09Is PPL or AEE better for a retirement portfolio?
For long-horizon retirement investors, Ameren Corporation (AEE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
05), 2. 6% yield, +173. 4% 10Y return). Both have compounded well over 10 years (AEE: +173. 4%, PPL: +31. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between PPL and AEE?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: PPL is a mid-cap quality compounder stock; AEE is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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