NextEra Energy (NEE) versus Its Peers Financial Contrast

NextEra Energy (NYSE: NEE) is one of 69 public companies in the “Electric services” industry, but how does it weigh in compared to its competitors? We will compare NextEra Energy to similar businesses based on the strength of its valuation, dividends, institutional ownership, risk, earnings, analyst recommendations and profitability.

Profitability

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This table compares NextEra Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextEra Energy 31.28% 11.50% 3.34%
NextEra Energy Competitors -22.94% 4.45% -0.40%

Valuation and Earnings

This table compares NextEra Energy and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NextEra Energy $17.20 billion $5.38 billion 24.03
NextEra Energy Competitors $8.49 billion $471.49 million 10.87

NextEra Energy has higher revenue and earnings than its competitors. NextEra Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

76.4% of NextEra Energy shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 0.6% of NextEra Energy shares are owned by company insiders. Comparatively, 3.5% of shares of all “Electric services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

NextEra Energy pays an annual dividend of $4.44 per share and has a dividend yield of 2.8%. NextEra Energy pays out 66.3% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 72.9% of their earnings in the form of a dividend. NextEra Energy has raised its dividend for 8 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NextEra Energy and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextEra Energy 0 0 13 0 3.00
NextEra Energy Competitors 432 2358 2037 58 2.35

NextEra Energy currently has a consensus price target of $166.38, indicating a potential upside of 3.35%. As a group, “Electric services” companies have a potential upside of 10.26%. Given NextEra Energy’s competitors higher possible upside, analysts clearly believe NextEra Energy has less favorable growth aspects than its competitors.

Volatility and Risk

NextEra Energy has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, NextEra Energy’s competitors have a beta of 0.03, indicating that their average stock price is 97% less volatile than the S&P 500.

Summary

NextEra Energy beats its competitors on 11 of the 15 factors compared.

NextEra Energy Company Profile

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of February 16, 2018, the company operated approximately 46,790 megawatts of net generating capacity. As of December 31, 2017, it served approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,000 circuit miles of transmission and distribution lines and approximately 620 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.

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