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GE Vernova vs. AES: Which Stock Leads the Clean Energy Race?
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Key Takeaways
GE Vernova benefits from grid modernization, renewables and manufacturing expansions in Vietnam and Italy.
AES secured 4 GW of PPAs in 2025 and has a 12 GW backlog, including 5.7 GW under construction.
GE Vernova posted 51% stock gains in six months, while AES rose 8.4% amid clean energy demand growth.
The demand for clean electricity is accelerating at an unprecedented pace, driven by a powerful mix of structural shifts and technological evolution. In this evolving landscape, companies like GE Vernova (GEV - Free Report) and AES Corporation (AES - Free Report) are well positioned to benefit, given their growing portfolios of renewable assets, grid solutions and strategic investments in next-generation energy technologies.
A key near-term driver of electricity demand is the explosive growth of artificial intelligence and cloud computing infrastructure. The rapid expansion of hyperscale, AI-powered data centers is significantly increasing electricity consumption worldwide. These facilities require vast amounts of power not only to run high-performance processors but also to support advanced cooling systems that ensure uninterrupted operations. Unlike traditional demand sources, data centers require stable, around-the-clock power supply, which is accelerating investments in both renewable generation and grid reliability solutions.
Utilities are no longer just power providers; they are becoming central players in enabling a cleaner, more resilient and technology-driven energy ecosystem. Companies that can efficiently scale renewable generation, integrate storage solutions and modernize transmission infrastructure are likely to capture significant long-term value, making them increasingly attractive from an investment standpoint.
Let's compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of GEV Stock
GE Vernova is a pure-play energy company with a dedicated focus on grid modernization, renewable power and decarbonization technologies. The company benefits from its diversified business across Power, Wind, and Electrification, which allows it to provide customers with a full suite of solutions, from gas and nuclear to wind energy and grid technology. Owing to its flexibility, the business attracts a diverse customer base and maintains resilience against market fluctuations.
GE Vernova stands to benefit significantly from the accelerating demand for clean electricity through its recent manufacturing expansions in Vietnam and Italy, as these investments directly strengthen its ability to supply critical grid infrastructure at scale. These efforts position GE Vernova to capture rising investment in grid modernization and renewable integration, allowing it to scale revenues and improve execution efficiency.
Factors Acting in Favor of AES Stock
AES is capitalizing on the global transition to renewable energy by making strategic investments in clean energy solutions, including energy storage and utility-scale renewables, which provide attractive long-term growth opportunities. Along with leveraging innovation and AI to accelerate clean energy advancements, the company is also benefiting from its global diversification, which may lead to more stable revenues and an operational recovery.
The company signed or secured new long-term Power Purchase Agreements (PPAs) for 4 gigawatts (GW) of renewables in 2025. It also completed the construction of 3.2 GW of solar, energy storage and wind projects during the year and currently has a project backlog of 12 GW under signed PPAs, including 5.7 GW under construction.
How Do Zacks Estimates Compare for GEV & AES?
The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates a 21.03% year-over-year decrease, while that for 2027 EPS indicates a 55.57% increase. GEV’s long-term (three to five years) earnings growth rate is 18%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AES’ 2026 and 2027 EPS indicates an increase of 2.56% and 1.98%, respectively, year over year. AES’ long-term earnings growth rate is 10.91%.
Image Source: Zacks Investment Research
Valuation for GEV & AES
GEV shares trade at a forward 12-month Price/Sales (P/S F12M) of 5.36X compared with AES’ P/S F12M of 0.69X, making AES more attractive from a valuation standpoint.
GEV & AES’ Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 46.91% compared with AES’ 19.94%.
GEV & AES’ Price Performance
In the past six months, shares of GE Vernova and AES have increased 51% and 8.4%, respectively.
GEV or AES: Which Is a Better Choice Now?
GE Vernova is well positioned to capitalize on rising clean electricity demand through its diversified energy portfolio and strategic manufacturing expansions, enabling scalable grid solutions and stronger growth in the energy transition. AES is benefiting from the global shift to renewables through strategic investments, innovation-driven growth and a diversified portfolio that supports stable long-term expansion.
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Image: Bigstock
GE Vernova vs. AES: Which Stock Leads the Clean Energy Race?
Key Takeaways
The demand for clean electricity is accelerating at an unprecedented pace, driven by a powerful mix of structural shifts and technological evolution. In this evolving landscape, companies like GE Vernova (GEV - Free Report) and AES Corporation (AES - Free Report) are well positioned to benefit, given their growing portfolios of renewable assets, grid solutions and strategic investments in next-generation energy technologies.
A key near-term driver of electricity demand is the explosive growth of artificial intelligence and cloud computing infrastructure. The rapid expansion of hyperscale, AI-powered data centers is significantly increasing electricity consumption worldwide. These facilities require vast amounts of power not only to run high-performance processors but also to support advanced cooling systems that ensure uninterrupted operations. Unlike traditional demand sources, data centers require stable, around-the-clock power supply, which is accelerating investments in both renewable generation and grid reliability solutions.
Utilities are no longer just power providers; they are becoming central players in enabling a cleaner, more resilient and technology-driven energy ecosystem. Companies that can efficiently scale renewable generation, integrate storage solutions and modernize transmission infrastructure are likely to capture significant long-term value, making them increasingly attractive from an investment standpoint.
Let's compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of GEV Stock
GE Vernova is a pure-play energy company with a dedicated focus on grid modernization, renewable power and decarbonization technologies. The company benefits from its diversified business across Power, Wind, and Electrification, which allows it to provide customers with a full suite of solutions, from gas and nuclear to wind energy and grid technology. Owing to its flexibility, the business attracts a diverse customer base and maintains resilience against market fluctuations.
GE Vernova stands to benefit significantly from the accelerating demand for clean electricity through its recent manufacturing expansions in Vietnam and Italy, as these investments directly strengthen its ability to supply critical grid infrastructure at scale. These efforts position GE Vernova to capture rising investment in grid modernization and renewable integration, allowing it to scale revenues and improve execution efficiency.
Factors Acting in Favor of AES Stock
AES is capitalizing on the global transition to renewable energy by making strategic investments in clean energy solutions, including energy storage and utility-scale renewables, which provide attractive long-term growth opportunities. Along with leveraging innovation and AI to accelerate clean energy advancements, the company is also benefiting from its global diversification, which may lead to more stable revenues and an operational recovery.
The company signed or secured new long-term Power Purchase Agreements (PPAs) for 4 gigawatts (GW) of renewables in 2025. It also completed the construction of 3.2 GW of solar, energy storage and wind projects during the year and currently has a project backlog of 12 GW under signed PPAs, including 5.7 GW under construction.
How Do Zacks Estimates Compare for GEV & AES?
The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates a 21.03% year-over-year decrease, while that for 2027 EPS indicates a 55.57% increase. GEV’s long-term (three to five years) earnings growth rate is 18%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AES’ 2026 and 2027 EPS indicates an increase of 2.56% and 1.98%, respectively, year over year. AES’ long-term earnings growth rate is 10.91%.
Image Source: Zacks Investment Research
Valuation for GEV & AES
GEV shares trade at a forward 12-month Price/Sales (P/S F12M) of 5.36X compared with AES’ P/S F12M of 0.69X, making AES more attractive from a valuation standpoint.
GEV & AES’ Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 46.91% compared with AES’ 19.94%.
GEV & AES’ Price Performance
In the past six months, shares of GE Vernova and AES have increased 51% and 8.4%, respectively.
GEV or AES: Which Is a Better Choice Now?
GE Vernova is well positioned to capitalize on rising clean electricity demand through its diversified energy portfolio and strategic manufacturing expansions, enabling scalable grid solutions and stronger growth in the energy transition. AES is benefiting from the global shift to renewables through strategic investments, innovation-driven growth and a diversified portfolio that supports stable long-term expansion.
Our choice at the moment is AES, given its better earnings growth projection and more attractive valuation than GE Vernova. Both AES and GEV stocks carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.