Nextera Energy Inc (NEE)vsSouthern Company (SO)
NEE
Nextera Energy Inc
$85.03
-0.82%
UTILITIES · Cap: $175.57B
SO
Southern Company
$93.75
-0.91%
UTILITIES · Cap: $107.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Southern Company generates 5% more annual revenue ($30.18B vs $28.82B). NEE leads profitability with a 40.4% profit margin vs 15.4%. NEE appears more attractively valued with a PEG of 1.71. NEE earns a higher WallStSmart Score of 70/100 (B-).
NEE
Strong Buy70
out of 100
Grade: B-
SO
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
-50.5%
Fair Value
$62.28
Current Price
$93.75
$31.47 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 33.0%
Earnings expanding 93.2% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.6%
Earnings expanding 30.4% YoY
Areas to Watch
Expensive relative to growth rate
1.6% revenue growth
Elevated debt levels
Weak financial health signals
Expensive relative to growth rate
0.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NEE
The strongest argument for NEE centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 40.4% and operating margin at 33.0%.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 29.6%.
Bear Case : NEE
The primary concerns for NEE are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.85 is elevated, increasing financial risk.
Bear Case : SO
The primary concerns for SO are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.
Key Dynamics to Monitor
NEE carries more volatility with a beta of 0.64 — expect wider price swings.
NEE is growing revenue faster at 1.6% — sustainability is the question.
SO generates stronger free cash flow (-293M), providing more financial flexibility.
Monitor UTILITIES - REGULATED ELECTRIC industry trends, competitive dynamics, and regulatory changes.
Bottom Line
NEE scores higher overall (70/100 vs 66/100), backed by strong 40.4% margins. 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 →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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