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 426% more annual revenue ($28.70B vs $5.46B). NEE leads profitability with a 32.4% profit margin vs 12.0%. NEE appears more attractively valued with a PEG of 1.90. NEE earns a higher WallStSmart Score of 71/100 (B).

NEE

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.72

PNW

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 5.5Value: 3.3Quality: 2.0
Piotroski: 1/9Altman Z: 0.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NEE.

PNWSignificantly Overvalued (-27.4%)

Margin of Safety

-27.4%

Fair Value

$75.40

Current Price

$101.03

$25.63 premium

UndervaluedFair: $75.40Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEE5 strengths · Avg: 9.6/10
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
$181.90B9/10

Large-cap with strong market position

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

PNW1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

NEE4 concerns · Avg: 2.8/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.42B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.722/10

Distress zone — elevated risk

PNW4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.6%4/10

0.6% earnings growth

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.582/10

Expensive relative to growth rate

Free Cash FlowQuality
$-393.06M2/10

Negative free cash flow — burning cash

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 32.4% and operating margin at 31.5%. Revenue growth of 12.4% demonstrates continued momentum.

Bull Case : PNW

The strongest argument for PNW centers on Price/Book. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : NEE

The primary concerns for NEE are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : PNW

The primary concerns for PNW are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.14 is elevated, increasing financial risk.

Key Dynamics to Monitor

NEE profiles as a mature stock while PNW is a value play — different risk/reward profiles.

NEE carries more volatility with a beta of 0.65 — expect wider price swings.

NEE is growing revenue faster at 12.4% — sustainability is the question.

PNW generates stronger free cash flow (-393M), providing more financial flexibility.

Bottom Line

NEE scores higher overall (71/100 vs 55/100), backed by strong 32.4% margins and 12.4% revenue growth. 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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