NextEra Energy, Inc. (NEE) vs Xcel Energy Inc. (XEL)

NextEra Energy, Inc. and Xcel Energy Inc. are both Utilities Regulated Electric companies. NextEra Energy, Inc. is the larger, with a market value of $158.3B against $43.4B — 3.6× the size. NextEra Energy, Inc. trades at the lower P/E: 17.1× against 19.0×. NextEra Energy, Inc. grew revenue faster over the last twelve months: 10.8% against 4.72%. NextEra Energy, Inc. has the higher net margin (32.4% vs 15.3%) and the higher return on invested capital (3.05% vs 2.83%). Both pay a dividend; Xcel Energy Inc. yields more (3.79% vs 3.63%). Across the 22 metrics below, NextEra Energy, Inc. leads on 13 and Xcel Energy Inc. on 9.

Valuation

Metric NEE XEL Utilities Regulated Electric median
P/E 17.11 19.02 18.84
P/S 5.53 2.98 2.52
P/B 2.33 1.81 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA 16.83 13.89 11.82
EV/Sales 9.27 5.55 4.58
Earnings yield 5.84% 5.26% 5.30%
Free cash flow yield (10.44%) (17.63%) (5.06%)

Profitability

Metric NEE XEL Utilities Regulated Electric median
Gross margin 81.54% 67.57% 66.28%
Operating margin 29.82% 19.08% 21.79%
Net margin 32.40% 15.28% 12.94%
Free cash flow margin (57.72%) (52.63%) (11.51%)
Return on equity 14.42% 9.92% 9.75%
Return on assets 4.31% 2.75% 2.75%
Return on invested capital 3.05% 2.83% 3.87%

Growth

Metric NEE XEL Utilities Regulated Electric median
Revenue growth (TTM) 10.81% 4.72% 7.43%
EPS growth (last fiscal year) (2.08%) (0.58%) —
Revenue growth, 5-year CAGR 8.78% 4.94% 6.75%
Net income growth, 5-year CAGR 18.55% 6.50% 6.44%

Health

Metric NEE XEL Utilities Regulated Electric median
Debt to equity 1.62 1.64 1.53
Current ratio 0.53 0.70 0.81
Net debt to EBITDA 6.10 5.93 5.25

Dividend

Metric NEE XEL Utilities Regulated Electric median
Dividend yield 3.63% 3.79% 4.33%
Payout ratio 0.44 0.64 0.66

Size

Metric NEE XEL Utilities Regulated Electric median
Market cap 158.26b 43.36b 22.90b

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