WallStSmart

Arm Holdings plc American Depositary Shares (ARM)vsNextera Energy Inc (NEE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 497% more annual revenue ($27.87B vs $4.67B). NEE leads profitability with a 29.4% profit margin vs 17.2%. NEE appears more attractively valued with a PEG of 2.12. NEE earns a higher WallStSmart Score of 67/100 (B-).

ARM

Buy

51

out of 100

Grade: C-

Growth: 6.7Profit: 7.0Value: 3.7Quality: 7.8
Piotroski: 4/9Altman Z: 3.93

NEE

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 5.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.72

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARM3 strengths · Avg: 9.3/10
Market CapQuality
$252.01B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.9310/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
26.3%8/10

Revenue surging 26.3% year-over-year

NEE4 strengths · Avg: 9.5/10
Operating MarginProfitability
30.2%10/10

Strong operational efficiency at 30.2%

EPS GrowthGrowth
160.0%10/10

Earnings expanding 160.0% YoY

Market CapQuality
$194.60B9/10

Large-cap with strong market position

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

ARM4 concerns · Avg: 2.5/10
PEG RatioValuation
2.454/10

Expensive relative to growth rate

P/E RatioValuation
279.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
29.1x2/10

Trading at 29.1x book value

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

NEE4 concerns · Avg: 3.0/10
PEG RatioValuation
2.124/10

Expensive relative to growth rate

Debt/EquityHealth
1.753/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-580.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ARM

The strongest argument for ARM centers on Market Cap, Altman Z-Score, Revenue Growth. Profitability is solid with margins at 17.2% and operating margin at 15.4%. Revenue growth of 26.3% demonstrates continued momentum.

Bull 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%.

Bear Case : ARM

The primary concerns for ARM are PEG Ratio, P/E Ratio, Price/Book. A P/E of 279.2x leaves little room for execution misses.

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.

Key Dynamics to Monitor

ARM profiles as a growth stock while NEE is a mature play — different risk/reward profiles.

ARM carries more volatility with a beta of 3.41 — expect wider price swings.

ARM is growing revenue faster at 26.3% — sustainability is the question.

ARM generates stronger free cash flow (186M), providing more financial flexibility.

Bottom Line

NEE scores higher overall (67/100 vs 51/100), 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.

Arm Holdings plc American Depositary Shares

TECHNOLOGY · SEMICONDUCTORS · USA

Arm Holdings plc architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers rely on to develop products.

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 →

Want to dig deeper into these stocks?