American Water Works (AWK)vsNextera Energy Inc (NEE)
AWK
American Water Works
$124.47
+1.82%
UTILITIES · Cap: $24.67B
NEE
Nextera Energy Inc
$85.84
+1.36%
UTILITIES · Cap: $174.48B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 435% more annual revenue ($27.87B vs $5.21B). NEE leads profitability with a 29.4% profit margin vs 21.2%. NEE appears more attractively valued with a PEG of 1.84. NEE earns a higher WallStSmart Score of 69/100 (B-).
AWK
Buy60
out of 100
Grade: C
NEE
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-22.5%
Fair Value
$100.98
Current Price
$124.47
$23.49 premium
Intrinsic value data unavailable for NEE.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Keeps 21 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 30.2%
Earnings expanding 160.0% YoY
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Earnings declined 4.8%
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : AWK
The strongest argument for AWK centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 21.2% and operating margin at 33.2%.
Bull Case : NEE
The strongest argument for NEE centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 29.4% and operating margin at 30.2%.
Bear Case : AWK
The primary concerns for AWK are PEG Ratio, Debt/Equity, Piotroski F-Score.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
NEE carries more volatility with a beta of 0.72 — expect wider price swings.
NEE is growing revenue faster at 7.3% — sustainability is the question.
AWK generates stronger free cash flow (-354M), providing more financial flexibility.
Monitor UTILITIES - REGULATED WATER industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NEE scores higher overall (69/100 vs 60/100), backed by strong 29.4% margins. Both earn "Strong Buy" and "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.
American Water Works
UTILITIES · UTILITIES - REGULATED WATER · USA
American Water is an American public utility company operating in the United States and Canada.
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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