Entergy Corporation (ETR) vs NextEra Energy, Inc. (NEE)

Entergy Corporation and NextEra Energy, Inc. are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $46.9B — 3.4× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 24.9×. NextEra Energy, Inc. grew revenue faster over the last twelve months: 10.8% against 9.55%. NextEra Energy, Inc. has the higher net margin (32.4% vs 13.3%) and the lower return on invested capital (3.05% vs 4.06%). Both pay a dividend; Entergy Corporation yields more (4.45% vs 3.63%). Across the 22 metrics below, NextEra Energy, Inc. leads on 12 and Entergy Corporation on 10.

Valuation

Metric ETR NEE Utilities Regulated Electric median
P/E 24.89 17.11 18.84
P/S 3.35 5.53 2.52
P/B 2.48 2.33 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 13.07 16.83 11.82
EV/Sales 5.52 9.27 4.58
Earnings yield 4.02% 5.84% 5.30%
Free cash flow yield (6.55%) (10.44%) (5.06%)

Profitability

Metric ETR NEE Utilities Regulated Electric median
Gross margin 70.78% 81.54% 66.28%
Operating margin 22.90% 29.82% 21.79%
Net margin 13.33% 32.40% 12.94%
Free cash flow margin (21.96%) (57.72%) (11.51%)
Return on equity 10.44% 14.42% 9.75%
Return on assets 2.44% 4.31% 2.75%
Return on invested capital 4.06% 3.05% 3.87%

Growth

Metric ETR NEE Utilities Regulated Electric median
Revenue growth (TTM) 9.55% 10.81% 7.43%
EPS growth (last fiscal year) 59.59% (2.08%) —
Revenue growth, 5-year CAGR 5.06% 8.78% 6.75%
Net income growth, 5-year CAGR 4.84% 18.55% 6.44%

Health

Metric ETR NEE Utilities Regulated Electric median
Debt to equity 1.80 1.62 1.53
Current ratio 0.91 0.53 0.81
Net debt to EBITDA 4.94 6.10 5.25

Dividend

Metric ETR NEE Utilities Regulated Electric median
Dividend yield 4.45% 3.63% 4.33%
Payout ratio 0.64 0.44 0.66

Size

Metric ETR NEE Utilities Regulated Electric median
Market cap 46.90b 158.26b 22.90b

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