WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 413% more annual revenue ($27.41B vs $5.34B). 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-).

NEE

Strong Buy

65

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.72

PNW

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.5Value: 4.7Quality: 2.8
Piotroski: 1/9Altman Z: 0.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NEEUndervalued (+41.0%)

Margin of Safety

+41.0%

Fair Value

$154.44

Current Price

$91.16

$63.28 discount

UndervaluedFair: $154.44Overvalued
PNWSignificantly Overvalued (-145.0%)

Margin of Safety

-145.0%

Fair Value

$39.19

Current Price

$97.70

$58.51 premium

UndervaluedFair: $39.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEE5 strengths · Avg: 8.4/10
Market CapQuality
$190.89B9/10

Large-cap with strong market position

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

Operating MarginProfitability
24.4%8/10

Strong operational efficiency at 24.4%

Revenue GrowthGrowth
20.7%8/10

Revenue surging 20.7% year-over-year

EPS GrowthGrowth
26.0%8/10

Earnings expanding 26.0% YoY

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

Reasonable price relative to book value

Areas to Watch

NEE4 concerns · Avg: 3.0/10
P/E RatioValuation
27.8x4/10

Moderate valuation

Debt/EquityHealth
1.753/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.742/10

Expensive relative to growth rate

PNW4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
0.6%4/10

0.6% earnings growth

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
2.992/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PNW

The strongest argument for PNW centers on Price/Book.

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.

Bear Case : PNW

The primary concerns for PNW are Revenue Growth, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

NEE profiles as a growth stock while PNW is a value 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.

NEE generates stronger free cash flow (277M), providing more financial flexibility.

Bottom Line

NEE scores higher overall (65/100 vs 53/100), backed by strong 24.9% margins and 20.7% 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.

Visit Website →

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.

Want to dig deeper into these stocks?