Nextera Energy Inc (NEE)vsNRG Energy Inc. (NRG)
NEE
Nextera Energy Inc
$93.10
-0.24%
UTILITIES · Cap: $194.60B
NRG
NRG Energy Inc.
$138.11
-2.64%
UTILITIES · Cap: $30.18B
Smart Verdict
WallStSmart Research — data-driven comparison
NRG Energy Inc. generates 10% more annual revenue ($30.71B vs $27.87B). NEE leads profitability with a 29.4% profit margin vs 2.8%. NRG appears more attractively valued with a PEG of 1.34. NEE earns a higher WallStSmart Score of 67/100 (B-).
NEE
Strong Buy67
out of 100
Grade: B-
NRG
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
+58.9%
Fair Value
$391.20
Current Price
$138.11
$253.09 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Every $100 of equity generates 42 in profit
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
2.8% margin — thin
Operating margin of 4.3%
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : NRG
The strongest argument for NRG centers on Return on Equity. Revenue growth of 13.7% demonstrates continued momentum. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.75 is elevated, increasing financial risk.
Bear Case : NRG
The primary concerns for NRG are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 157.6x leaves little room for execution misses. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
NEE profiles as a mature stock while NRG is a value play — different risk/reward profiles.
NRG carries more volatility with a beta of 1.31 — expect wider price swings.
NRG is growing revenue faster at 13.7% — sustainability is the question.
NRG generates stronger free cash flow (-486M), providing more financial flexibility.
Bottom Line
NEE scores higher overall (67/100 vs 56/100), backed by strong 29.4% margins. NRG offers better value entry with a 58.9% margin of safety. 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.
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.
Visit Website →NRG Energy Inc.
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
NRG Energy, Inc. is a large American energy company, headquartered in Houston, Texas. It was formerly the wholesale arm of Northern States Power Company (NSP), which became Xcel Energy, but became independent in 2000. NRG Energy is involved in energy generation and retail electricity.
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