Nextera Energy Inc (NEE)vsSouthern Company (SO)
NEE
Nextera Energy Inc
$89.50
-3.15%
UTILITIES · Cap: $186.48B
SO
Southern Company
$93.39
-2.95%
UTILITIES · Cap: $104.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 8% more annual revenue ($29.55B vs $27.41B). NEE leads profitability with a 24.9% profit margin vs 14.7%. SO appears more attractively valued with a PEG of 2.67. NEE earns a higher WallStSmart Score of 65/100 (B-).
NEE
Strong Buy65
out of 100
Grade: B-
SO
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.0%
Fair Value
$154.44
Current Price
$89.50
$64.94 discount
Margin of Safety
-250.3%
Fair Value
$26.66
Current Price
$93.39
$66.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Large-cap with strong market position
Reasonable price relative to book value
Areas to Watch
Moderate valuation
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Earnings declined 22.1%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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 : SO
The strongest argument for SO centers on Market Cap, Price/Book. Revenue growth of 10.1% demonstrates continued momentum.
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 : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
NEE profiles as a growth stock while SO 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 54/100), 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 →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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