As global policies and investments increasingly favor decarbonization, electrification, and renewable infrastructure expansion, energy stocks focused on renewable transition, such as GE Vernova (GEV Quick QuoteGEV - Free Report) and Siemens Energy (SMNEY Quick QuoteSMNEY - Free Report) , are gaining popularity. Investing in these companies offers long-term exposure to the transformation of the global energy system, backed by rising demand for grid modernization and sustainable energy solutions.

While GE Vernova is a pure-play energy company with a strong focus on grid modernization, renewable generation and decarbonization technologies, Siemens Energy offers a broader portfolio, encompassing gas turbines, grid solutions and a growing renewable energy segment through its majority stake in Siemens Gamesa.

As investors increasingly prioritize companies driving the global energy transition, both GEV and SMNEY stand out for their ability to meet rising power demands while advancing decarbonization efforts. This article examines which of these two energy leaders presents a more compelling investment opportunity in the evolving clean energy landscape.

Key Takeaways for GEV 

Recent Initiatives: As part of its global clean energy expansion, GE Vernova unveiled energy initiatives worth up to $14.2 billion in Saudi Arabia in May 2025. This move should strengthen its presence in a region where it already has over 50 gigawatts (GW) of power generation technology installed. The initiatives further reinforce GEV’s role in the country’s energy transition. 

Additionally, GE Vernova Hitachi Nuclear Energy (“GVH”) recently received approval from Ontario and Ontario Power Generation to begin construction of the first BWRX-300 small modular reactor at the Darlington site — the first of four units, with completion slated by decade-end.
These strategic moves underscore GEV’s growing footprint in the global clean energy transition.

Financial Health: GEV’s cash and cash equivalents as of March 31, 2025, totaled $8.11 billion, while both the current and long-term debt values were nil. A comparative analysis of these figures reflects that GE Vernova boasts a strong solvency position, which, in turn, should enable the company to duly meet its commitment to invest $5 billion in research and development (R&D) through 2028. Notably, the company aims to utilize half of this R&D investment in industrializing its existing products and maintaining its installed base. The other half is intended for long-term innovation to deliver next-generation differentiated products.

Challenges to Note: GE Vernova, while positioned for long-term growth, faces headwinds in its offshore wind segment. The business is grappling with rising material costs, ongoing supply-chain disruptions, and regulatory delays — factors that continue to impact project execution and inflate costs. 

As a major offshore wind turbine manufacturer, GEV saw revenues in this segment drop 53.7% year over year in the first quarter of 2025 due to slower production. Balancing large-scale investments in next-gen technologies amid declining revenues could pressure margins, making offshore wind a more volatile part of its renewable energy portfolio.

Key Takeaways for SMNEY

Recent Achievements: Among Siemens Energy’s recent clean energy acheivements, worth mentioning is a $1.6-billion contract, which it secured this March with Harbin Electric International to supply core technologies for Saudi Arabia’s Rumah 2 and Nairyah 2 gas-fired power plants.  These projects will jointly add 3.6 GW of clean energy and rank among the world’s largest combined-cycle facilities. Earlier in February, Siemens Energy partnered with Rolls-Royce SMR to become the exclusive supplier of steam turbines, generators, and auxiliary systems for next-generation small modular nuclear reactors. 

These strategic deals should strengthen Siemens Energy’s growing role in accelerating the global clean energy transition.

Financial Health: SMNEY’s cash and cash equivalents as of March 31, 2025, totaled $8.98 billion and improved sequentially. On the other hand, while its current debt totaled $0.92 billion, long-term debt amounted to $2.94 billion. A comparative analysis of these figures suggests that Siemens Energy boasts a strong solvency position, which, in turn, should enable the company to achieve its manufacturing facility expansion plans to meet the growing electricity demand. 

These investments include a factory expansion for converter electronics in Nuremberg, Germany, along with expansions of manufacturing facilities that are currently taking place in Austria, Croatia, Italy and India. The company is also investing in the new Vacuum Interrupters (VI) factory in Berlin, where climate-friendly switchgear products are being manufactured.  

Challenges to Note: Siemens Energy continues to grapple with legacy challenges, particularly in its renewable segment, through Siemens Gamesa. Persistent quality issues in wind turbine components and cost overruns have weighed heavily on profitability and investor confidence in recent years. In the fiscal second quarter, the company reported further negative special items tied to the ongoing restructuring of its wind business. Additionally, Siemens Energy remains vulnerable to broader supply-chain disruptions, which risk delaying project deliveries and driving up costs.

How Do Zacks Estimates Compare for GEV & SMNEY?

The Zacks Consensus Estimate for GE Vernova’s 2025 sales and earnings per share (EPS) implies an improvement of 5.9% and 28.3%, respectively, from the year-ago quarter’s reported figures. The stock’s near-term EPS estimates (except those for 2026) have also been trending upward over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Siemens Energy’s fiscal 2025 sales implies a year-over-year improvement of 8.4%, while that for earnings suggests a decline of 42.5%. The stock’s bottom-line estimates for 2025 have moved south over the past 60 days, while those for 2026 have moved north.

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Stock Price Performance: GEV vs SMNEY

GEV (up 43.4%) has underperformed SMNEY (up 52.8%) over the past three months and has done the same in the past year. Shares of GEV and SMNEY have surged 180.2% and 238.4%, respectively.

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Valuation of SMNEY More Attractive Than That of GEV

SMNEY is trading at a forward earnings multiple of 46.70X, below GE Vernova’s forward earnings multiple of 52.06X.

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GEV’s ROE Better Than SMNEY

A comparative analysis of both these stocks’ Return on Equity (ROE) suggests SMNEY is less efficient at generating profits from its equity base compared to GEV.

Image Source: Zacks Investment Research

GEV or SMNEY: Which Is a Better Player?

Both GE Vernova and Siemens Energy are well-positioned to benefit from the accelerating global energy transition. While both these companies stand out with their focused clean energy investment traits, across the globe, particularly in Saudi Arabia lately along with a strong balance sheet count.

However, the challenges faced by these stocks diverge. While GEV’s near-term risks are tied to its offshore wind segment, Siemens Energy continues to face legacy issues from Siemens Gamesa that may impact profitability.  

Metric-wise, SMNEY currently trades at a more attractive valuation and has outperformed GEV in recent stock performance. On the other hand, GEV’s stronger earnings growth outlook and better ROE make it appealing for long-term investors seeking focused clean energy exposure. 

Considering the above discussion, staying invested in both should be beneficial. However, given GEV’s stronger ROE, a slight preference for GEV may be a prudent strategy to capitalize on the evolving clean energy landscape. 

Both GEV and SMNEY stocks carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.