Diamondback Energy Inc (FANG)vsNextera Energy Inc (NEE)
FANG
Diamondback Energy Inc
$196.02
-0.53%
ENERGY · Cap: $55.59B
NEE
Nextera Energy Inc
$91.16
-0.50%
UTILITIES · Cap: $190.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 92% more annual revenue ($27.41B vs $14.29B). NEE leads profitability with a 24.9% profit margin vs 11.6%. NEE appears more attractively valued with a PEG of 2.74. NEE earns a higher WallStSmart Score of 65/100 (B-).
FANG
Hold45
out of 100
Grade: D+
NEE
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.4%
Fair Value
$130.64
Current Price
$196.02
$65.38 premium
Margin of Safety
+41.0%
Fair Value
$154.44
Current Price
$91.16
$63.28 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Large-cap with strong market position
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 24.4%
Revenue surging 20.7% year-over-year
Earnings expanding 26.0% YoY
Areas to Watch
Premium valuation, high expectations priced in
ROE of 3.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : FANG
The strongest argument for FANG centers on Market Cap, Price/Book, Free Cash Flow.
Bull Case : NEE
The strongest argument for NEE centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 24.9% and operating margin at 24.4%. Revenue growth of 20.7% demonstrates continued momentum.
Bear Case : FANG
The primary concerns for FANG are P/E Ratio, Return on Equity, Piotroski F-Score.
Bear Case : NEE
The primary concerns for NEE are P/E Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
FANG profiles as a declining stock while NEE is a growth play — different risk/reward profiles.
NEE carries more volatility with a beta of 0.75 — expect wider price swings.
NEE is growing revenue faster at 20.7% — sustainability is the question.
FANG generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
NEE scores higher overall (65/100 vs 45/100), backed by strong 24.9% margins and 20.7% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Diamondback Energy Inc
ENERGY · OIL & GAS E&P · USA
Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas.
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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