Nextera Energy Inc (NEE)vsSouthern Company (SO)
NEE
Nextera Energy Inc
$95.51
+0.81%
UTILITIES · Cap: $202.17B
SO
Southern Company
$95.99
-0.09%
UTILITIES · Cap: $108.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 8% more annual revenue ($30.18B vs $27.87B). NEE leads profitability with a 29.4% profit margin vs 14.5%. NEE appears more attractively valued with a PEG of 2.14. NEE earns a higher WallStSmart Score of 68/100 (B-).
NEE
Strong Buy68
out of 100
Grade: B-
SO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
-31.1%
Fair Value
$73.23
Current Price
$95.99
$22.76 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 30.2%
Earnings expanding 160.0% YoY
Keeps 29 of every $100 in revenue as profit
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : NEE
The strongest argument for NEE centers on Market Cap, Operating Margin, EPS Growth. Profitability is solid with margins at 29.4% and operating margin at 30.2%.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
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 : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
NEE profiles as a mature stock while SO is a value play — different risk/reward profiles.
NEE carries more volatility with a beta of 0.73 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
NEE generates stronger free cash flow (-580M), providing more financial flexibility.
Bottom Line
NEE scores higher overall (68/100 vs 56/100), backed by strong 29.4% 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.
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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