Nextera Energy Inc (NEE)vsSempra Energy (SRE)
NEE
Nextera Energy Inc
$82.31
-0.16%
UTILITIES · Cap: $170.69B
SRE
Sempra Energy
$83.34
-0.79%
UTILITIES · Cap: $54.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Nextera Energy Inc generates 112% more annual revenue ($28.70B vs $13.55B). NEE leads profitability with a 32.4% profit margin vs 16.8%. SRE appears more attractively valued with a PEG of 0.70. NEE earns a higher WallStSmart Score of 71/100 (B).
NEE
Strong Buy71
out of 100
Grade: B
SRE
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for NEE.
Margin of Safety
-36.8%
Fair Value
$60.93
Current Price
$83.34
$22.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 31.5%
Earnings expanding 53.1% YoY
Large-cap with strong market position
Earnings expanding 71.3% YoY
Large-cap with strong market position
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 28.3%
Areas to Watch
Expensive relative to growth rate
Elevated debt levels
Weak financial health signals
Negative free cash flow — burning cash
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Revenue declined 0.1%
Negative free cash flow — burning cash
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 32.4% and operating margin at 31.5%. Revenue growth of 12.4% demonstrates continued momentum.
Bull Case : SRE
The strongest argument for SRE centers on EPS Growth, Market Cap, PEG Ratio. Profitability is solid with margins at 16.8% and operating margin at 28.3%. PEG of 0.70 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 1.93 is elevated, increasing financial risk.
Bear Case : SRE
The primary concerns for SRE are Return on Equity, Debt/Equity, Revenue Growth.
Key Dynamics to Monitor
NEE profiles as a mature stock while SRE is a declining play — different risk/reward profiles.
NEE carries more volatility with a beta of 0.65 — expect wider price swings.
NEE is growing revenue faster at 12.4% — sustainability is the question.
SRE generates stronger free cash flow (-1.6B), providing more financial flexibility.
Bottom Line
NEE scores higher overall (71/100 vs 68/100), backed by strong 32.4% margins and 12.4% 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 →Sempra Energy
UTILITIES · UTILITIES - DIVERSIFIED · USA
Sempra Energy is a North American energy infrastructure company based in San Diego, California. Sempra Energy's focus is on electric and natural gas infrastructure. Its operating companies include: Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) in Southern California; Oncor Electric Delivery Company (Oncor) in Texas; Sempra LNG; and IEnova, based in Mexico.
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