WallStSmart

Nextera Energy Inc (NEE)vsPinnacle West Capital Corp (PNW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 419% more annual revenue ($28.82B vs $5.55B). NEE leads profitability with a 40.4% profit margin vs 11.5%. NEE appears more attractively valued with a PEG of 1.71. NEE earns a higher WallStSmart Score of 70/100 (B-).

NEE

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.0Value: 5.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.72

PNW

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 6.0Value: 3.3Quality: 2.5
Piotroski: 1/9Altman Z: 0.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NEE.

PNWSignificantly Overvalued (-24.7%)

Margin of Safety

-24.7%

Fair Value

$76.99

Current Price

$104.22

$27.23 premium

UndervaluedFair: $76.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEE5 strengths · Avg: 9.4/10
Profit MarginProfitability
40.4%10/10

Keeps 40 of every $100 in revenue as profit

Operating MarginProfitability
33.0%10/10

Strong operational efficiency at 33.0%

EPS GrowthGrowth
93.2%10/10

Earnings expanding 93.2% YoY

Market CapQuality
$175.57B9/10

Large-cap with strong market position

P/E RatioValuation
15.1x8/10

Attractively priced relative to earnings

PNW2 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.3%8/10

Strong operational efficiency at 21.3%

Areas to Watch

NEE4 concerns · Avg: 3.5/10
PEG RatioValuation
1.714/10

Expensive relative to growth rate

Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

Debt/EquityHealth
1.853/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PNW4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.623/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.812/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.5%2/10

Earnings declined 9.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : NEE

The strongest argument for NEE centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 40.4% and operating margin at 33.0%.

Bull Case : PNW

The strongest argument for PNW centers on Price/Book, Operating Margin.

Bear Case : NEE

The primary concerns for NEE are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Bear Case : PNW

The primary concerns for PNW are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

NEE carries more volatility with a beta of 0.64 — expect wider price swings.

PNW is growing revenue faster at 7.1% — sustainability is the question.

PNW generates stronger free cash flow (-335M), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NEE scores higher overall (70/100 vs 55/100), backed by strong 40.4% 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.

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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Pinnacle West Capital Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Pinnacle West Capital is a utility holding company that owns Arizona Public Service and Bright Canyon Energy.

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