Nextera Energy Inc (NEE)vsSempra Energy (SRE)
NEE
Nextera Energy Inc
$85.84
+1.36%
UTILITIES · Cap: $174.48B
SRE
Sempra Energy
$90.34
+0.82%
UTILITIES · Cap: $58.54B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 106% more annual revenue ($27.87B vs $13.55B). NEE leads profitability with a 29.4% profit margin vs 14.4%. SRE appears more attractively valued with a PEG of 0.78. NEE earns a higher WallStSmart Score of 69/100 (B-).
NEE
Strong Buy69
out of 100
Grade: B-
SRE
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
-51.4%
Fair Value
$60.40
Current Price
$90.34
$29.94 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 30.2%
Earnings expanding 160.0% YoY
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Strong operational efficiency at 30.6%
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
ROE of 6.4% — below average capital efficiency
Elevated debt levels
Revenue declined 3.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : NEE
The strongest argument for NEE centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 29.4% and operating margin at 30.2%.
Bull Case : SRE
The strongest argument for SRE centers on Operating Margin, Market Cap, PEG Ratio. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Debt/Equity.
Key Dynamics to Monitor
NEE profiles as a mature stock while SRE is a declining play — different risk/reward profiles.
NEE carries more volatility with a beta of 0.72 — expect wider price swings.
NEE is growing revenue faster at 7.3% — sustainability is the question.
NEE generates stronger free cash flow (-580M), providing more financial flexibility.
Bottom Line
NEE scores higher overall (69/100 vs 64/100), 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 →Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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