NextEra Energy, Inc. (NEE) vs Southern Company (The) (SO)

NextEra Energy, Inc. and Southern Company (The) are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $95.3B — 1.7× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 19.9×. NextEra Energy, Inc. grew revenue faster over the last twelve months: 10.8% against 6.40%. NextEra Energy, Inc. has the higher net margin (32.4% vs 15.4%) and the lower return on invested capital (3.05% vs 4.05%). Both pay a dividend; Southern Company (The) yields more (4.15% vs 3.63%). Across the 22 metrics below, NextEra Energy, Inc. leads on 11 and Southern Company (The) on 11.

Valuation

Metric NEE SO Utilities Regulated Electric median
P/E 17.11 19.88 18.84
P/S 5.53 3.12 2.52
P/B 2.33 2.23 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.83 12.07 11.82
EV/Sales 9.27 5.46 4.58
Earnings yield 5.84% 5.03% 5.30%
Free cash flow yield (10.44%) (3.47%) (5.06%)

Profitability

Metric NEE SO Utilities Regulated Electric median
Gross margin 81.54% 71.88% 66.28%
Operating margin 29.82% 24.21% 21.79%
Net margin 32.40% 15.43% 12.94%
Free cash flow margin (57.72%) (10.83%) (11.51%)
Return on equity 14.42% 11.69% 9.75%
Return on assets 4.31% 3.00% 2.75%
Return on invested capital 3.05% 4.05% 3.87%

Growth

Metric NEE SO Utilities Regulated Electric median
Revenue growth (TTM) 10.81% 6.40% 7.43%
EPS growth (last fiscal year) (2.08%) (1.99%) —
Revenue growth, 5-year CAGR 8.78% 7.72% 6.75%
Net income growth, 5-year CAGR 18.55% 6.84% 6.44%

Health

Metric NEE SO Utilities Regulated Electric median
Debt to equity 1.62 1.73 1.53
Current ratio 0.53 0.79 0.81
Net debt to EBITDA 6.10 5.27 5.25

Dividend

Metric NEE SO Utilities Regulated Electric median
Dividend yield 3.63% 4.15% 4.33%
Payout ratio 0.44 0.98 0.66

Size

Metric NEE SO Utilities Regulated Electric median
Market cap 158.26b 95.28b 22.90b

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