Group 1 - Constellation Energy Corporation (CEG) has underperformed in the stock market over the past year, showing lower operating margins and negative free cash flow compared to many competitors, despite moderate revenue growth [2][3] - CEG's operating margin stands at 12.1%, the lowest among its peers, while NextEra Energy (NEE) boasts a significantly higher margin of 28.2%, indicating NEE's stable regulated utility and renewable energy framework compared to CEG's exposure to a competitive power market [3] - The valuation of CEG appears elevated, with a price-to-earnings (PE) ratio of 33.0, which is higher than most of its peers, reflecting market caution regarding the volatility of merchant power despite increasing demand for its nuclear assets driven by AI [3][8] Group 2 - CEG's revenue growth is at 3.6%, which is lower than several competitors like Duke Energy (DUK), Southern Company (SO), Vistra (VST), and Exelon (EXC), which benefit from rate base growth and mergers and acquisitions; however, CEG outperforms NEE, which experienced a revenue decline of 6.9% due to project cycles [8]
How Does Constellation Energy Stock Compare With Its Peers?