Compare Entergy Corporation (ETR) vs Ameren Corporation (AEE) Stock

Ameren Corporation (AEE) offers the better valuation at 21.2x trailing P/E (21.1x forward), making it the more compelling value choice. Analysts rate Entergy Corporation (ETR) a "Buy" — based on 31 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.

On trailing P/E, Ameren Corporation (AEE) is the cheapest at 21.2x versus Entergy Corporation at 27.4x. On forward P/E, Ameren Corporation is actually cheaper at 21.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Ameren Corporation wins at 2.39x versus Entergy Corporation's 9.61x.

Over the past 5 years, Entergy Corporation (ETR) delivered a total return of +169.3%, compared to +76.1% for Ameren Corporation (AEE). A $10,000 investment in ETR five years ago would be worth approximately $27K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ETR returned +252.2% versus AEE's +187.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ameren Corporation (AEE) is the lower-risk stock at 0.18β versus Entergy Corporation's 0.43β — meaning ETR is approximately 136% more volatile than AEE relative to the S&P 500. On balance sheet safety, Ameren Corporation (AEE) carries a lower debt/equity ratio of 147% versus 180% for Entergy Corporation — giving it more financial flexibility in a downturn.

Ameren Corporation (AEE) is the more profitable company, earning 16.5% net margin versus 13.7% for Entergy Corporation — meaning it keeps 16.5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ETR leads at 23.6% versus 23.0% for AEE. At the gross margin level — before operating expenses — ETR leads at 29.9%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Ameren Corporation (AEE) is the more undervalued stock at a PEG of 2.39x versus Entergy Corporation's 9.61x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Ameren Corporation (AEE) trades at 21.1x forward P/E versus 24.4x for Entergy Corporation — 3.2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AEE: 1.7% to $115.25.

All stocks in this comparison pay dividends. Ameren Corporation (AEE) offers the highest yield at 2.5%, versus 2.2% for Entergy Corporation (ETR).

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 0.18), 2.5% yield, +187.8% 10Y return). Both have compounded well over 10 years (AEE: +187.8%, ETR: +252.2%), 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.

Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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.