WallStSmart

The AES Corporation (AES)vsNextera Energy Inc (NEE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 120% more annual revenue ($28.70B vs $13.05B). NEE leads profitability with a 32.4% profit margin vs 14.3%. AES appears more attractively valued with a PEG of 1.09. AES earns a higher WallStSmart Score of 73/100 (B).

AES

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 7.0Value: 6.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.48

NEE

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AESSignificantly Overvalued (-37.3%)

Margin of Safety

-37.3%

Fair Value

$11.97

Current Price

$14.79

$2.82 premium

UndervaluedFair: $11.97Overvalued

Intrinsic value data unavailable for NEE.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AES5 strengths · Avg: 9.2/10
P/E RatioValuation
5.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.3%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
951.0%10/10

Earnings expanding 951.0% YoY

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.9%8/10

19.9% revenue growth

NEE4 strengths · Avg: 9.8/10
Profit MarginProfitability
32.4%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

EPS GrowthGrowth
53.1%10/10

Earnings expanding 53.1% YoY

Market CapQuality
$170.69B9/10

Large-cap with strong market position

Areas to Watch

AES4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-597.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.482/10

Distress zone — elevated risk

Debt/EquityHealth
6.501/10

Elevated debt levels

NEE4 concerns · Avg: 3.0/10
PEG RatioValuation
1.824/10

Expensive relative to growth rate

Debt/EquityHealth
1.933/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.42B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AES

The strongest argument for AES centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 19.9% demonstrates continued momentum. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bull Case : NEE

The strongest argument for NEE centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 32.4% and operating margin at 31.5%. Revenue growth of 12.4% demonstrates continued momentum.

Bear Case : AES

The primary concerns for AES are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 6.50 is elevated, increasing financial risk.

Bear Case : NEE

The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.93 is elevated, increasing financial risk.

Key Dynamics to Monitor

AES profiles as a growth stock while NEE is a mature play — different risk/reward profiles.

AES carries more volatility with a beta of 0.95 — expect wider price swings.

AES is growing revenue faster at 19.9% — sustainability is the question.

AES generates stronger free cash flow (-597M), providing more financial flexibility.

Bottom Line

AES scores higher overall (73/100 vs 71/100) and 19.9% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The AES Corporation

UTILITIES · UTILITIES - DIVERSIFIED · USA

The AES Corporation is a Fortune 500 company that generates and distributes electrical power. AES is headquartered in Arlington, Virginia.

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Nextera Energy Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

NextEra Energy, Inc. is an American energy company with about 46 gigawatts of generating capacity, revenues of over $17 billion in 2017, and about 14,000 employees throughout the US and Canada. Its subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources, NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.

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