WallStSmart

Nextera Energy Inc (NEE)vsPG&E Corp (PCG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Nextera Energy Inc generates 8% more annual revenue ($27.87B vs $25.83B). NEE leads profitability with a 29.4% profit margin vs 11.0%. PCG appears more attractively valued with a PEG of 0.73. PCG earns a higher WallStSmart Score of 77/100 (B+).

NEE

Strong Buy

69

out of 100

Grade: B-

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

PCG

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 6.0Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.46
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NEE.

PCGSignificantly Overvalued (-37.1%)

Margin of Safety

-37.1%

Fair Value

$12.36

Current Price

$16.83

$4.47 premium

UndervaluedFair: $12.36Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$174.48B9/10

Large-cap with strong market position

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

PCG6 strengths · Avg: 8.3/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.738/10

Growing faster than its price suggests

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.9%8/10

Strong operational efficiency at 23.9%

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

EPS GrowthGrowth
39.8%8/10

Earnings expanding 39.8% YoY

Areas to Watch

NEE4 concerns · Avg: 3.0/10
PEG RatioValuation
1.844/10

Expensive relative to growth rate

Debt/EquityHealth
1.893/10

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

PCG4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.893/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-926.00M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.462/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PCG

The strongest argument for PCG centers on Price/Book, PEG Ratio, P/E Ratio. Revenue growth of 15.0% demonstrates continued momentum. PEG of 0.73 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 : PCG

The primary concerns for PCG are Debt/Equity, Piotroski F-Score, Free Cash Flow. Debt-to-equity of 1.89 is elevated, increasing financial risk.

Key Dynamics to Monitor

NEE profiles as a mature stock while PCG is a value play — different risk/reward profiles.

NEE carries more volatility with a beta of 0.72 — expect wider price swings.

PCG is growing revenue faster at 15.0% — sustainability is the question.

NEE generates stronger free cash flow (-580M), providing more financial flexibility.

Bottom Line

PCG scores higher overall (77/100 vs 69/100) and 15.0% revenue growth. Both earn "Strong Buy" and "Strong 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 →

PG&E Corp

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

PG&E Corporation, through its subsidiary, Pacific Gas and Electric Company, is engaged in the sale and delivery of electricity and natural gas to customers in northern and central California, United States. The company is headquartered in San Francisco, California.

Want to dig deeper into these stocks?