GE Vernova vs. Siemens Energy: Which Clean Energy Stock Has More Upside?

As nations worldwide accelerate renewable investments, supported by rising electricity consumption from global data center expansion, clean energy-driven stocks such as GE Vernova (GEV) and Siemens Energy (SMNEY) are gaining momentum lately. Government decarbonization targets, grid modernization initiatives, and demand for efficient storage technologies further strengthen these companies’ positioning as prominent clean-energy integrators.GE Vernova operates as a pure-play energy company, focusing on grid modernization, renewable power generation, and decarbonization technologies. In contrast, Siemens Energy maintains a more diversified portfolio that spans gas turbines, grid infrastructure, and an expanding renewable presence through its majority ownership in Siemens Gamesa.Looking ahead, as next-generation investors are increasingly prioritizing companies positioned to drive the energy transition, both GE Vernova and Siemens Energy stand out for their ability to meet surging global power demand while advancing decarbonization.If an investor could pick one, which stock is the frontrunner in clean energy? To get that answer, let’s delve deeper into the fundamentals of these companies.Financial Strength & Growth Catalysts: GEV vs SMNEYGE Vernova’s cash and cash equivalents as of June 30, 2025, totaled $7.89 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 should enable it to fulfill its commitment to invest $9 billion in cumulative research and development (R&D) and capital expenditures through 2028.As part of this plan, the company has plans to invest $600 million in its U.S. factories and facilities over the next two years (as mentioned in a January 2025 press release). GEV also plans to invest a total of nearly $20 million to expand capacity at its Grid Solutions facilities in Charleroi, PA, which will support the smooth integration of renewable electricity across the United States. On the other hand, SMNEY ended June 2025 with cash and cash equivalents worth $9.64 billion. On the other hand, its current debt totaled $1.72 million, while its long-term debt amounted to $2.48 billion. A comparative analysis of these figures reveals that Siemens Energy maintains a strong solvency position, which, in turn, should enable the company to execute its manufacturing facility expansion plans effectively and meet the growing electricity demand. These plans include the company’s goal, as of September 2025, to invest approximately $257 million to expand its transformer factory in Nuremberg, Germany.As far as growth catalysts are concerned, rising demand for both offshore and onshore wind continues to strengthen the outlook for the broader wind industry, as renewables increasingly outcompete fossil-fuel power on cost. This trend positions GE Vernova and Siemens Energy to benefit, as both companies advance their expansion efforts in the wind market.In September, GEV received an order from Germany’s Enertrag to supply seven 6MW, 164m turbines, among others. In the same month, GEV announced that it clinched an order from Germany’s Prokon Regenerative Energien eG to repower a wind farm with eight 6MW-164m turbines in the second quarter of 2025. On the other hand, in June 2025, Siemens Energy Berlin delivered its 2000th SF6-free 8VM1 Blue GIS to the monumental Hornsea 3 wind farm in the North Sea, developed by Siemens Gamesa. These are indicative of the solid demand that both GEV and SMNEY’s products enjoy in the wind industry.Apart from the growth characteristics of the wind energy industry, increasing demand for efficient grid and storage solutions, along with the rising use of non-fossil energy sources such as nuclear, has also been driving growth for GEV and SMNEY.Risks of Investing in GEV vs SMNEYBoth GE Vernova and Siemens Energy face shared risks in the wind industry, particularly offshore wind, where rising material costs, supply-chain bottlenecks, and regulatory hurdles have strained project economics and slowed deployment. Compounding these challenges, U.S. import tariffs introduced in early 2025 threaten to further inflate raw material and installation costs while extending project timelines — a key downside risk for wind-focused stocks like GEV and SMNEY, which are already navigating a fragile supply landscape and facing pressure to meet ambitious targets.Beyond the issues related to the offshore wind market, both these companies are vulnerable to the high volatility in cost and availability of raw materials required for manufacturing renewable energy products, including steel, copper, and rare earth elements. This can compress margins and affect the final cost of their equipment and services.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 6.6% and 36.6%, respectively, from the year-ago quarter’s reported figures. The stock’s EPS estimates have moved south over the past 60 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Siemens Energy’s fiscal 2025 sales implies a year-over-year improvement of 21.2%, while that for earnings suggests a surge of 25.3%. The stock’s bottom-line estimates for fiscal 2025 and 2026 have moved north over the past 60 days.Image Source: Zacks Investment ResearchStock Price Performance: GEV vs SMNEYGEV (up 14.3%) has underperformed SMNEY (down 0.7%) over the past three months. However, in the past year, SMNEY outperformed GEV. Shares of GEV and SMNEY have surged 137.3% and 212.8%, respectively.Image Source: Zacks Investment ResearchValuation of SMNEY More Attractive Than That of GEVSMNEY is trading at a forward earnings multiple of 30.17, below GE Vernova’s forward earnings multiple of 51.90.Image Source: Zacks Investment ResearchSMNEY’s ROIC Better Than GEVA comparative analysis of both these stocks’ Return on Invested Capital (ROIC) suggests SMNEY is more effective at generating profits from its capital compared to GEV.Image Source: Zacks Investment ResearchFinal CallTo conclude, although GE Vernova benefits from a pure-play focus on grid modernization and a pristine, debt-free balance sheet, Siemens Energy is currently the stronger contender in the clean energy space. SMNEY’s financial profile shows a significant advantage with its lower forward earnings multiple than GEV. Furthermore, SMNEY boasts a superior Return on Invested Capital (ROIC), higher projected sales growth, a positive movement in earnings growth projections, and a considerably better one-year stock performance compared to GEV. Thus, for investors prioritizing capital efficiency, stronger stock momentum, and a more favorable valuation as the energy transition accelerates, SMNEY stands out as the stronger clean energy choice for now.SMNEY sports a Zacks Rank #1 (Strong Buy) at present, while GEV has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Vernova Inc. (GEV): Free Stock Analysis Report Siemens Energy AG Unsponsored ADR (SMNEY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks