In the evolving landscape of regulated electric utilities, Duke Energy Corporation (DUK) and Ameren Corporation (AEE) stand out as key players. Both companies serve millions of customers across the U.S. Midwest and Southeast, blending traditional energy sources with growing renewable portfolios. Their market overlap and innovation in sustainable energy make them natural competitors. This article will help you identify which company offers the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Duke Energy Corporation and Ameren Corporation by providing an overview of these two companies and their main differences.
Duke Energy Corporation Overview
Duke Energy Corporation is a major energy company in the US, serving approximately 8.2M customers across six states in the Southeast and Midwest. Its operations span electric utilities and infrastructure, gas utilities and infrastructure, and commercial renewables. The company owns about 50,259 MW of generation capacity, including coal, natural gas, nuclear, hydroelectric, and renewables. Headquartered in Charlotte, NC, Duke is a key player in regulated electric utilities.
Ameren Corporation Overview
Ameren Corporation operates as a public utility holding company primarily in Missouri and Illinois. It focuses on rate-regulated electric generation, transmission, and distribution, as well as natural gas distribution and transmission. Ameren’s power generation includes coal, nuclear, natural gas, and renewable sources like wind and solar. Serving residential, commercial, and industrial customers, Ameren is headquartered in St. Louis, MO, with a workforce of 8,981 employees.
Key similarities and differences
Both Duke Energy and Ameren operate in the regulated electric utilities sector, focusing on generation, transmission, and distribution of electricity and natural gas. Each uses a mix of fossil fuels and renewables for power generation. However, Duke has a larger customer base and greater generation capacity, with an emphasis on commercial renewables through wind and solar projects, while Ameren operates mainly in two states with a smaller workforce and a broader segment structure including transmission operations.
Income Statement Comparison
This table presents a side-by-side comparison of key income statement metrics for Duke Energy Corporation and Ameren Corporation for the fiscal year 2024.
| Metric | Duke Energy Corporation | Ameren Corporation |
|---|---|---|
| Market Cap | 90.8B | 27.0B |
| Revenue | 30.4B | 7.6B |
| EBITDA | 15.0B | 3.5B |
| EBIT | 8.6B | 1.9B |
| Net Income | 4.5B | 1.2B |
| EPS | 5.71 | 4.43 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Duke Energy Corporation
Duke Energy’s revenue increased steadily from 2020 to 2024, with a 29.92% growth over the period, while net income surged by 227.52%, reflecting strong profitability gains. Gross and EBIT margins remained favorable, above 50% and 28% respectively. In 2024, revenue growth slowed moderately to 4.46%, but gross profit and EBIT margins improved, supporting a slight net margin increase.
Ameren Corporation
Ameren showed moderate revenue growth of 31.57% over 2020-2024, with net income rising by 35.71%. Gross margins stayed favorable near 48%, and EBIT margins at 25%. However, revenue growth decelerated to 1.64% in 2024, with operating expenses growing in line. Net margin remained stable around 15.5%, and EPS growth was neutral, indicating steady but less dynamic profitability.
Which one has the stronger fundamentals?
Duke Energy demonstrates stronger fundamentals with higher net income growth and improved margins over the period, despite slightly unfavorable interest expenses. Ameren maintains solid profitability but with slower recent growth and less margin expansion. Both firms have favorable overall income statements, yet Duke’s substantial earnings acceleration and margin gains suggest more robust income statement fundamentals.
Financial Ratios Comparison
The table below presents a side-by-side comparison of key financial ratios for Duke Energy Corporation (DUK) and Ameren Corporation (AEE) based on their latest fiscal year 2024 data.
| Ratios | Duke Energy Corporation (DUK) | Ameren Corporation (AEE) |
|---|---|---|
| ROE | 8.997% | 9.757% |
| ROIC | 4.017% | 3.323% |
| P/E | 18.44 | 20.12 |
| P/B | 1.66 | 1.96 |
| Current Ratio | 0.67 | 0.66 |
| Quick Ratio | 0.44 | 0.44 |
| D/E | 1.70 | 1.55 |
| Debt-to-Assets | 45.7% | 42.0% |
| Interest Coverage | 2.34 | 2.29 |
| Asset Turnover | 0.16 | 0.17 |
| Fixed Asset Turnover | 0.24 | 0.21 |
| Payout Ratio | 71.2% | 60.4% |
| Dividend Yield | 3.86% | 3.00% |
Interpretation of the Ratios
Duke Energy Corporation
Duke Energy shows a mixed ratio profile with a strong net margin of 14.86% and favorable dividend yield at 3.86%, but weak returns on equity (9.0%) and invested capital (4.02%). Liquidity ratios are low (current ratio 0.67), suggesting short-term concerns. The company pays dividends with a stable yield, though some leverage and coverage metrics warrant caution.
Ameren Corporation
Ameren’s net margin is slightly higher at 15.51%, yet it faces similar challenges with low returns on equity (9.76%) and invested capital (3.32%). Liquidity ratios are also weak (current ratio 0.66). Dividend yield is a moderate 3.0%. Ameren maintains payouts but must manage debt carefully; coverage ratios remain neutral but not robust.
Which one has the best ratios?
Both Duke Energy and Ameren have identical proportions of favorable and unfavorable ratios, resulting in a slightly unfavorable overall assessment. Duke edges slightly on dividend yield, while Ameren shows a marginally better net margin. Neither company stands out decisively; investors should weigh these balanced strengths and weaknesses carefully.
Strategic Positioning
This section compares the strategic positioning of Duke Energy Corporation and Ameren Corporation, covering market position, key segments, and exposure to technological disruption:
Duke Energy Corporation
- Large market cap of 90.8B with diversified competition in U.S. regulated electric utilities.
- Operates Electric Utilities, Gas Utilities, and Commercial Renewables segments.
- Exposure includes renewable energy projects like wind, solar, and battery storage, plus traditional fuel sources.
Ameren Corporation
- Smaller market cap of 27.0B, operating mainly as a public utility holding company.
- Operates four segments: Ameren Missouri, Illinois Electric & Gas Distribution, and Transmission.
- Generates electricity via coal, nuclear, natural gas, and renewables including hydro, wind, methane, and solar.
Duke Energy Corporation vs Ameren Corporation Positioning
Duke Energy’s strategy is more diversified across electric, gas, and commercial renewables, serving 8.2M customers in multiple states. Ameren’s focus is more concentrated on regional electric and gas utilities with four main segments. Duke’s broader footprint offers scale, while Ameren specializes regionally.
Which has the best competitive advantage?
Both companies are shedding value based on ROIC versus WACC. Duke shows a slightly unfavorable moat with growing profitability, while Ameren’s moat is very unfavorable with declining profitability, indicating Duke currently holds a relatively stronger competitive advantage.
Stock Comparison
The stock price chart highlights significant bullish trends for both Duke Energy Corporation (DUK) and Ameren Corporation (AEE) over the past 12 months, with notable deceleration in momentum and recent price declines affecting short-term trading dynamics.
Trend Analysis
Duke Energy Corporation’s stock showed a 27.12% increase over the past year, indicating a bullish trend with deceleration in price acceleration. The stock fluctuated between a high of 128.53 and a low of 90.86, with recent weeks showing an 8.3% decline.
Ameren Corporation experienced a stronger bullish trend with a 43.73% price increase over the last 12 months but also saw deceleration. Its price ranged from 69.51 to 106.35, followed by a recent 4.19% drop.
Comparing both, Ameren delivered the highest market performance over the past year, outperforming Duke Energy despite both stocks showing recent short-term bearish pressure.
Target Prices
Analysts present a positive consensus for Duke Energy Corporation and Ameren Corporation, indicating potential upside.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Duke Energy Corporation | 150 | 126 | 135.91 |
| Ameren Corporation | 119 | 103 | 111.86 |
The target consensus for Duke Energy at 135.91 is notably above its current price of 116.8, suggesting upside potential. Ameren’s consensus of 111.86 also exceeds its present price of 99.91, reflecting optimistic analyst expectations for both utilities.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Duke Energy Corporation and Ameren Corporation:
Rating Comparison
Duke Energy Corporation Rating
- Rating: C+, classified as Very Favorable
- Discounted Cash Flow Score: 1, rated Very Unfavorable
- ROE Score: 3, rated Moderate
- ROA Score: 3, rated Moderate
- Debt To Equity Score: 2, rated Moderate
- Overall Score: 2, rated Moderate
Ameren Corporation Rating
- Rating: B-, classified as Very Favorable
- Discounted Cash Flow Score: 1, rated Very Unfavorable
- ROE Score: 4, rated Favorable
- ROA Score: 3, rated Moderate
- Debt To Equity Score: 2, rated Moderate
- Overall Score: 2, rated Moderate
Which one is the best rated?
Based strictly on the provided data, Ameren Corporation holds a higher rating grade (B-) compared to Duke Energy’s C+. Ameren also outperforms Duke in ROE score, while both share similar scores in other metrics.
Scores Comparison
The scores comparison between Duke Energy Corporation and Ameren Corporation is as follows:
Duke Energy Corporation Scores
- Altman Z-Score: 0.71, indicating financial distress.
- Piotroski Score: 6, reflecting average financial health.
Ameren Corporation Scores
- Altman Z-Score: 0.97, indicating financial distress.
- Piotroski Score: 6, reflecting average financial health.
Which company has the best scores?
Both Duke Energy and Ameren have Altman Z-Scores in the distress zone, showing financial risk. Their Piotroski Scores are equal at 6, indicating average financial strength for both companies.
Grades Comparison
Here is a comparison of the recent grades assigned to Duke Energy Corporation and Ameren Corporation by reputable grading companies:
Duke Energy Corporation Grades
The following table summarizes the latest grades from major financial institutions for Duke Energy Corporation:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Neutral | 2025-12-17 |
| JP Morgan | Maintain | Neutral | 2025-12-11 |
| Mizuho | Maintain | Outperform | 2025-10-27 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-22 |
| Barclays | Maintain | Overweight | 2025-10-14 |
| UBS | Maintain | Neutral | 2025-10-10 |
| BMO Capital | Maintain | Outperform | 2025-10-10 |
| Scotiabank | Upgrade | Sector Outperform | 2025-10-03 |
| Jefferies | Downgrade | Hold | 2025-09-26 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
Duke Energy’s grades indicate a stable outlook with a mix of Neutral to Outperform ratings, reflecting moderate confidence and some recent upgrades balanced by a downgrade.
Ameren Corporation Grades
The following table shows the recent grades assigned to Ameren Corporation by recognized grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2025-12-17 |
| Keybanc | Downgrade | Sector Weight | 2025-12-12 |
| Mizuho | Maintain | Outperform | 2025-10-27 |
| Morgan Stanley | Maintain | Equal Weight | 2025-10-22 |
| Barclays | Maintain | Equal Weight | 2025-10-21 |
| Keybanc | Maintain | Overweight | 2025-10-15 |
| Morgan Stanley | Maintain | Equal Weight | 2025-09-25 |
| Keybanc | Maintain | Overweight | 2025-07-16 |
| UBS | Maintain | Buy | 2025-07-11 |
| Barclays | Maintain | Equal Weight | 2025-07-10 |
Ameren’s ratings generally favor a positive outlook with several Buy and Overweight grades, though a recent downgrade to Sector Weight indicates some caution.
Which company has the best grades?
Both Duke Energy and Ameren have a consensus Hold rating, but Ameren shows a higher proportion of Buy and Overweight ratings compared to Duke’s Neutral and Equal Weight grades. This suggests Ameren may be viewed more favorably by analysts, potentially impacting investor sentiment and portfolio positioning.
Strengths and Weaknesses
Below is a comparison of key strengths and weaknesses for Duke Energy Corporation (DUK) and Ameren Corporation (AEE) based on the most recent data.
| Criterion | Duke Energy Corporation (DUK) | Ameren Corporation (AEE) |
|---|---|---|
| Diversification | Strong diversification with $26.8B in electric utilities and $2.3B in gas utilities | Less diversified, $6.5B in electricity and $1.1B in natural gas |
| Profitability | Net margin 14.9%, ROIC 4.0% (below WACC 4.8%) showing slight value destruction but improving profitability | Net margin 15.5%, ROIC 3.3% (below WACC 5.2%) with declining profitability, indicating value destruction |
| Innovation | Moderate investment in commercial renewables (~$484M annually) showing commitment to cleaner energy | Limited data on renewables; primarily traditional utilities |
| Global presence | Primarily US-focused with large regulated utilities | US regional focus, mainly Illinois and Missouri |
| Market Share | Large player in electric utilities with stable revenue growth | Smaller scale, steady but slower revenue growth |
Key takeaways: Duke Energy demonstrates stronger diversification and improving profitability trends, while Ameren faces declining returns and less diversification. Both companies currently destroy value based on ROIC vs WACC, but Duke’s improving ROIC trend suggests better future potential. Investors should weigh Duke’s scale and growth prospects against Ameren’s regional focus and challenges.
Risk Analysis
Below is a comparative overview of key risks for Duke Energy Corporation (DUK) and Ameren Corporation (AEE) based on the most recent 2024 data.
| Metric | Duke Energy Corporation (DUK) | Ameren Corporation (AEE) |
|---|---|---|
| Market Risk | Low beta of 0.49, indicating lower volatility than the market | Slightly higher beta of 0.59, moderate volatility |
| Debt level | High debt-to-equity ratio at 1.7 (unfavorable) | High debt-to-equity ratio at 1.55 (unfavorable) |
| Regulatory Risk | Significant exposure due to regulated electric utility status in multiple states | Similar regulatory environment in Missouri and Illinois |
| Operational Risk | Diverse generation mix but low asset turnover (0.16, unfavorable) | Similar operational challenges with low asset turnover (0.17) |
| Environmental Risk | Coal and nuclear reliance with active renewables portfolio; transition risks remain | Coal, nuclear, and renewables mix; faces transition and emission regulations |
| Geopolitical Risk | Primarily U.S. domestic operations, limited geopolitical exposure | U.S. focused, minimal direct geopolitical risks |
The most impactful and likely risks for both companies stem from high debt levels combined with operational inefficiencies, reflected in their unfavorable asset turnover rates. Both are in regulatory-heavy sectors exposed to environmental transition pressures as they balance legacy coal and nuclear assets with renewables. Notably, both firms fall into the Altman Z-Score distress zone, signaling financial vulnerability and warranting cautious risk management.
Which Stock to Choose?
Duke Energy Corporation shows favorable income growth with a 30% revenue increase over five years and strong net margin at 14.86%. Its profitability is moderate, but debt levels and liquidity ratios are unfavorable. The overall rating is moderate with a slightly unfavorable global ratio profile.
Ameren Corporation also posts favorable income with a 32% revenue growth over five years and a slightly higher net margin at 15.51%. Profitability ratios are moderate, debt is somewhat lower than Duke’s, but liquidity remains weak. Its rating is moderate with a similarly slightly unfavorable ratio profile.
For investors prioritizing growth potential and improving profitability, Duke’s rising ROIC trend might appear more attractive. Conversely, those valuing slightly better debt metrics and a steadier income margin may find Ameren more aligned with a stability-oriented profile. Both show some financial challenges, suggesting caution depending on risk tolerance.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Duke Energy Corporation and Ameren Corporation to enhance your investment decisions:
