WallStSmart

Nextera Energy Inc (NEE)vsRio Tinto ADR (RIO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rio Tinto ADR generates 107% more annual revenue ($57.64B vs $27.87B). NEE leads profitability with a 29.4% profit margin vs 17.3%. NEE appears more attractively valued with a PEG of 2.12. NEE earns a higher WallStSmart Score of 67/100 (B-).

NEE

Strong Buy

67

out of 100

Grade: B-

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

RIO

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for NEE.

RIOUndervalued (+33.7%)

Margin of Safety

+33.7%

Fair Value

$147.89

Current Price

$105.38

$42.51 discount

UndervaluedFair: $147.89Overvalued

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
$194.60B9/10

Large-cap with strong market position

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

RIO5 strengths · Avg: 8.2/10
Market CapQuality
$171.59B9/10

Large-cap with strong market position

P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

Free Cash FlowQuality
$2.53B8/10

Generating 2.5B in free cash flow

Areas to Watch

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

RIO2 concerns · Avg: 2.0/10
PEG RatioValuation
5.692/10

Expensive relative to growth rate

EPS GrowthGrowth
-5.6%2/10

Earnings declined 5.6%

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 : RIO

The strongest argument for RIO centers on Market Cap, P/E Ratio, Price/Book. Profitability is solid with margins at 17.3% and operating margin at 25.3%. Revenue growth of 14.6% demonstrates continued momentum.

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 : RIO

The primary concerns for RIO are PEG Ratio, EPS Growth.

Key Dynamics to Monitor

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

RIO is growing revenue faster at 14.6% — sustainability is the question.

RIO generates stronger free cash flow (2.5B), providing more financial flexibility.

Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NEE scores higher overall (67/100 vs 54/100), backed by strong 29.4% margins. RIO offers better value entry with a 33.7% margin of safety. 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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Rio Tinto ADR

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Rio Tinto Group is dedicated to the exploration, extraction and processing of mineral resources worldwide. The company is headquartered in London, the United Kingdom.

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