Nextera Energy Inc (NEE)vsSempra Energy (SRE)
NEE
Nextera Energy Inc
$94.17
-2.42%
UTILITIES · Cap: $196.38B
SRE
Sempra Energy
$92.64
-0.28%
UTILITIES · Cap: $60.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 103% more annual revenue ($27.87B vs $13.70B). NEE leads profitability with a 29.4% profit margin vs 13.4%. SRE appears more attractively valued with a PEG of 0.83. NEE earns a higher WallStSmart Score of 67/100 (B-).
NEE
Strong Buy67
out of 100
Grade: B-
SRE
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
-31.9%
Fair Value
$69.13
Current Price
$92.64
$23.51 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
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 27.7%
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 5.2% — below average capital efficiency
Weak financial health signals
Revenue declined 0.2%
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 Market Cap, PEG Ratio, Price/Book. PEG of 0.83 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 1.75 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are P/E Ratio, Return on Equity, Piotroski F-Score.
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 0.73 — 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 (67/100 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 →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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