WallStSmart

Nextera Energy Inc (NEE)vsNRG Energy Inc. (NRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

NRG Energy Inc. generates 13% more annual revenue ($32.38B vs $28.70B). NEE leads profitability with a 32.4% profit margin vs 0.7%. NRG appears more attractively valued with a PEG of 0.61. NEE earns a higher WallStSmart Score of 71/100 (B).

NEE

Strong Buy

71

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.72

NRG

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.61

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NEE5 strengths · Avg: 9.6/10
Profit MarginProfitability
32.4%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
31.5%10/10

Strong operational efficiency at 31.5%

EPS GrowthGrowth
53.1%10/10

Earnings expanding 53.1% YoY

Market CapQuality
$181.90B9/10

Large-cap with strong market position

Debt/EquityHealth
0.209/10

Conservative balance sheet, low leverage

NRG2 strengths · Avg: 8.0/10
PEG RatioValuation
0.618/10

Growing faster than its price suggests

Revenue GrowthGrowth
19.5%8/10

19.5% revenue growth

Areas to Watch

NEE4 concerns · Avg: 2.8/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-11.42B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.722/10

Distress zone — elevated risk

NRG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.614/10

Distress zone — elevated risk

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

P/E RatioValuation
147.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : NEE

The strongest argument for NEE centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 32.4% and operating margin at 31.5%. Revenue growth of 12.4% demonstrates continued momentum.

Bull Case : NRG

The strongest argument for NRG centers on PEG Ratio, Revenue Growth. Revenue growth of 19.5% demonstrates continued momentum. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bear Case : NEE

The primary concerns for NEE are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Bear Case : NRG

The primary concerns for NRG are Altman Z-Score, Profit Margin, Operating Margin. A P/E of 147.6x leaves little room for execution misses. Debt-to-equity of 4.83 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

NRG carries more volatility with a beta of 1.20 — expect wider price swings.

NRG is growing revenue faster at 19.5% — sustainability is the question.

NRG generates stronger free cash flow (779M), providing more financial flexibility.

Bottom Line

NEE scores higher overall (71/100 vs 51/100), backed by strong 32.4% margins and 12.4% 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.

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NRG Energy Inc.

UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA

NRG Energy, Inc. is a large American energy company, headquartered in Houston, Texas. It was formerly the wholesale arm of Northern States Power Company (NSP), which became Xcel Energy, but became independent in 2000. NRG Energy is involved in energy generation and retail electricity.

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