GE Vernova GEV and Public Service Enterprise Group PEG are positioned to benefit from rising electricity demand and grid modernization. As economies become increasingly dependent on electricity for transportation, industrial processes, data centers, and digital technologies, utilities and power-equipment providers are expected to play a critical role in supporting the energy transition.
The comparison between the two companies is particularly relevant today because several powerful industry trends are driving investment across the electric-power ecosystem. Electrification of transportation and heating is increasing electricity consumption, while the rapid growth of artificial intelligence and data centers is creating significant new power demand.
At the same time, aging grid infrastructure requires substantial upgrades to improve reliability, integrate renewable energy, and support higher electricity loads. GE Vernova stands to benefit as utilities increase their purchases of equipment and technology, while PSEG benefits from deploying capital into regulated grid assets that earn long-term returns.
Let us compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of GEV Stock
GE Vernova primarily supplies the equipment and technologies needed to generate, transmit, and manage electricity. Its portfolio includes gas turbines, wind turbines, grid solutions, and power software, allowing it to benefit from investments in new power-generation capacity and upgrades to transmission infrastructure. As utilities and independent power producers expand and modernize their systems, demand for GE Vernova's products and services could increase.
Recently, GEV released its 2025 Sustainability Report highlighting progress across its mission to "electrify the world to thrive and decarbonize." One of the most significant achievements was the addition of 26 gigawatts (GW) of new generating capacity during 2025. Nearly 47% of this capacity was deployed in developing and emerging economies, helping improve electricity access while supporting economic growth. The company also energized 68 GW of new power transformers, reinforcing its role in expanding and modernizing electric grids around the world.
Factors Acting in Favor of PEG Stock
Public Service Enterprise is a regulated utility that owns and operates electric transmission and distribution networks, primarily in New Jersey. Rather than selling equipment, the company invests directly in utility infrastructure, including transmission lines, substations, grid reliability projects, and clean-energy initiatives. Because many of these investments are made within a regulated framework, PSEG typically earns a predictable return approved by regulators, providing relatively stable cash flows and earnings growth.
The company is also benefiting from rising clean energy investments across the United States as utility-scale solar, wind and storage projects continue to expand. To capitalize on this trend, its subsidiary PSE&G owned 158 megawatts (MW) of installed solar PV capacity across New Jersey as of Dec. 31, 2025. These initiatives strengthen PSEG’s commitment to providing cleaner, more reliable, and affordable energy while supporting long-term profitability.
How Do Zacks Estimates Compare for GEV & PEG?
The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates growth of 72.92% year over year. GEV’s long-term (three to five years) earnings growth rate is 18%.
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The Zacks Consensus Estimate for Public Service Enterprise’s 2026 EPS implies growth of 7.9%. PEG’s long-term earnings growth rate is 16.09%.
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Valuation for GEV & PEG
GEV shares trade at a forward 12-month price/sales (P/S F12M) of 5.87X compared with PEG’s P/S F12M of 3.21X.
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GEV & PEG’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 43.97% compared with Public Service Enterprise’s 12.3%.
GEV & PEG’s Price Performance
In the past six months, shares of GE Vernova and Public Service Enterprise have risen 61.5% and 1.5%, respectively.
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GEV or PEG: Which Is a Better Choice Now?
GE Vernova is poised to benefit from growing investments in electricity infrastructure. The company continues to expand its role in supporting global electrification and grid development, particularly in regions seeking greater energy access and reliability. Public Service Enterprise invests directly in regulated electric transmission, distribution, and clean-energy infrastructure, generating stable and predictable returns through its utility operations. It is also positioning itself to benefit from the growing demand for reliable and sustainable electricity.
Our choice at the moment is GE Vernova, given its stronger ROE, better earnings growth and better price performance than Public Service Enterprise. Both GEV and PEG carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).