Comprehensive Stock Comparison
Compare FirstEnergy Corp. (FE) vs NextEra Energy, Inc. (NEE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | FE | 12.0% revenue growth vs NEE's 11.0% |
| Value | FE | Lower P/E (18.7x vs 23.3x) |
| Quality / Margins | NEE | 24.9% net margin vs FE's 8.4% |
| Stability / Safety | FE | Beta 0.07 vs NEE's 0.35 |
| Dividends | FE | 3.4% yield, 4-year raise streak, vs NEE's 2.4% |
| Momentum (1Y) | NEE | +37.8% vs FE's +36.5% |
| Efficiency (ROA) | NEE | 3.2% ROA vs FE's 2.3%, ROIC 4.1% vs 5.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
FirstEnergy is a regulated electric utility that generates, transmits, and distributes electricity to approximately 6 million customers across six Mid-Atlantic and Midwestern states. It makes money primarily through regulated rate structures — with its distribution segment contributing about 60% of revenue and transmission about 40% — earning a government-approved return on its infrastructure investments. Its key advantage is its monopoly-like position as a regulated utility with exclusive service territories, providing stable cash flows through cost-plus regulation.
NextEra Energy is a major electric utility and clean energy developer that operates regulated utilities in Florida while also building renewable projects across North America. It makes money primarily through regulated utility operations — about 60% of earnings — and its competitive energy generation business that develops wind, solar, and battery storage projects. The company's key advantage is its massive scale in renewable energy development and its first-mover position in clean energy infrastructure, giving it unmatched project execution capabilities and cost advantages.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
FE leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). NEE leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
NEE is the larger business by revenue, generating $27.5B annually — 1.8x FE's $15.1B. NEE is the more profitable business, keeping 24.9% of every revenue dollar as net income compared to FE's 8.4%.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| RevenueTrailing 12 months | $15.1B | $27.5B |
| EBITDAEarnings before interest/tax | $4.4B | $15.3B |
| Net IncomeAfter-tax profit | $1.3B | $6.8B |
| Free Cash FlowCash after capex | $2.5B | -$28.3B |
| Gross MarginGross profit ÷ Revenue | +65.3% | +62.8% |
| Operating MarginEBIT ÷ Revenue | +18.8% | +30.1% |
| Net MarginNet income ÷ Revenue | +8.4% | +24.9% |
| FCF MarginFCF ÷ Revenue | +16.8% | -103.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +19.6% | +21.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -118.7% | +25.9% |
Valuation Metrics
At 28.5x trailing earnings, NEE trades at a 2% valuation discount to FE's 29.1x P/E. On an enterprise value basis, FE's 6.1x EV/EBITDA is more attractive than NEE's 18.8x.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| Market CapShares × price | $697M | $195.3B |
| Enterprise ValueMkt cap + debt − cash | $26.9B | $288.1B |
| Trailing P/EPrice ÷ TTM EPS | 29.07x | 28.50x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.74x | 23.33x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.65x |
| EV / EBITDAEnterprise value multiple | 6.12x | 18.78x |
| Price / SalesMarket cap ÷ Revenue | 0.05x | 7.11x |
| Price / BookPrice ÷ Book value/share | 2.12x | 2.95x |
| Price / FCFMarket cap ÷ FCF | 0.19x | — |
Profitability & Efficiency
NEE delivers a 10.3% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $9 for FE. NEE carries lower financial leverage with a 1.44x debt-to-equity ratio, signaling a more conservative balance sheet compared to FE's 1.88x.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| ROE (TTM)Return on equity | +9.1% | +10.3% |
| ROA (TTM)Return on assets | +2.3% | +3.2% |
| ROICReturn on invested capital | +5.4% | +4.1% |
| ROCEReturn on capital employed | +7.6% | +4.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 1.88x | 1.44x |
| Net DebtTotal debt minus cash | $26.2B | $92.8B |
| Cash & Equiv.Liquid assets | $57M | $2.8B |
| Total DebtShort + long-term debt | $26.2B | $95.6B |
| Interest CoverageEBIT ÷ Interest expense | 2.49x | 1.81x |
Total Returns (with DRIP)
A $10,000 investment in FE five years ago would be worth $17,767 today (with dividends reinvested), compared to $13,627 for NEE. Over the past 12 months, NEE leads with a +37.8% total return vs FE's +36.5%. The 3-year compound annual growth rate (CAGR) favors FE at 12.5% vs NEE's 12.1% — a key indicator of consistent wealth creation.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| YTD ReturnYear-to-date | +14.0% | +16.6% |
| 1-Year ReturnPast 12 months | +36.5% | +37.8% |
| 3-Year ReturnCumulative with dividends | +42.2% | +41.0% |
| 5-Year ReturnCumulative with dividends | +77.7% | +36.3% |
| 10-Year ReturnCumulative with dividends | +99.6% | +287.2% |
| CAGR (3Y)Annualised 3-year return | +12.5% | +12.1% |
Risk & Volatility
FE is the less volatile stock with a 0.07 beta — it tends to amplify market swings less than NEE's 0.35 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.07x | 0.35x |
| 52-Week HighHighest price in past year | $51.34 | $95.91 |
| 52-Week LowLowest price in past year | $37.58 | $61.72 |
| % of 52W HighCurrent price vs 52-week peak | +99.6% | +97.8% |
| RSI (14)Momentum oscillator 0–100 | 71.9 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 3.9M | 7.5M |
Analyst Outlook
Wall Street rates FE as "Hold" and NEE as "Buy". Consensus price targets imply -0.5% upside for NEE (target: $93) vs -1.3% for FE (target: $51). For income investors, FE offers the higher dividend yield at 3.44% vs NEE's 2.39%.
| Metric | FEFirstEnergy Corp. | NEENextEra Energy, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $50.50 | $93.27 |
| # AnalystsCovering analysts | 27 | 36 |
| Dividend YieldAnnual dividend ÷ price | +3.4% | +2.4% |
| Dividend StreakConsecutive years of raises | 4 | 30 |
| Dividend / ShareAnnual DPS | $1.76 | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| FirstEnergy Corp. (FE) | 100 | 99.3 | -0.7% |
| NextEra Energy, Inc. (NEE) | 100 | 128.68 | +28.7% |
FirstEnergy Corp. (FE) returned +78% over 5 years vs NextEra Energy, Inc. (NEE)'s +36%. A $10,000 investment in FE 5 years ago would be worth $17,767 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| FirstEnergy Corp. (FE) | $14.6B | $15.1B | +3.6% |
| NextEra Energy, Inc. (NEE) | $16.1B | $27.5B | +70.3% |
FirstEnergy Corp.'s revenue grew from $14.6B (2016) to $15.1B (2025) — a 0.4% CAGR. NextEra Energy, Inc.'s revenue grew from $16.1B (2016) to $27.5B (2025) — a 6.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| FirstEnergy Corp. (FE) | -42.4% | 8.4% | +119.9% |
| NextEra Energy, Inc. (NEE) | 18.0% | 24.9% | +37.8% |
FirstEnergy Corp.'s net margin went from -42% (2016) to 8% (2025). NextEra Energy, Inc.'s net margin went from 18% (2016) to 25% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| FirstEnergy Corp. (FE) | 18.9 | 25.4 | +34.4% |
| NextEra Energy, Inc. (NEE) | 13.8 | 24.4 | +76.8% |
FirstEnergy Corp. has traded in a 15x–59x P/E range over 8 years; current trailing P/E is ~29x. NextEra Energy, Inc. has traded in a 13x–52x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| FirstEnergy Corp. (FE) | -14.49 | 1.76 | +112.1% |
| NextEra Energy, Inc. (NEE) | 1.56 | 3.29 | +110.9% |
FirstEnergy Corp.'s EPS grew from $-14.49 (2016) to $1.76 (2025). NextEra Energy, Inc.'s EPS grew from $1.56 (2016) to $3.29 (2025) — a 9% CAGR.
Chart 6Free Cash Flow — 5 Years
FirstEnergy Corp. generated $4B FCF in 2025 (+911% vs 2021). NextEra Energy, Inc. generated $-12B FCF in 2025 (-101% vs 2021).
FE vs NEE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FE or NEE a better buy right now?
NextEra Energy, Inc. (NEE) offers the better valuation at 28.5x trailing P/E (23.3x forward), making it the more compelling value choice. Analysts rate NextEra Energy, Inc. (NEE) a "Buy" — based on 36 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FE or NEE?
On trailing P/E, NextEra Energy, Inc. (NEE) is the cheapest at 28.5x versus FirstEnergy Corp. at 29.1x. On forward P/E, FirstEnergy Corp. is actually cheaper at 18.7x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — FE or NEE?
Over the past 5 years, FirstEnergy Corp. (FE) delivered a total return of +77.7%, compared to +36.3% for NextEra Energy, Inc. (NEE). A $10,000 investment in FE five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NEE returned +287.2% versus FE's +99.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FE or NEE?
By beta (market sensitivity over 5 years), FirstEnergy Corp. (FE) is the lower-risk stock at 0.07β versus NextEra Energy, Inc.'s 0.35β — meaning NEE is approximately 366% more volatile than FE relative to the S&P 500. On balance sheet safety, NextEra Energy, Inc. (NEE) carries a lower debt/equity ratio of 144% versus 188% for FirstEnergy Corp. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FE or NEE?
NextEra Energy, Inc. (NEE) is the more profitable company, earning 24.9% net margin versus 8.4% for FirstEnergy Corp. — meaning it keeps 24.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NEE leads at 30.1% versus 18.8% for FE. At the gross margin level — before operating expenses — FE leads at 65.3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FE or NEE more undervalued right now?
On forward earnings alone, FirstEnergy Corp. (FE) trades at 18.7x forward P/E versus 23.3x for NextEra Energy, Inc. — 4.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NEE: -0.5% to $93.27.
07Which pays a better dividend — FE or NEE?
All stocks in this comparison pay dividends. FirstEnergy Corp. (FE) offers the highest yield at 3.4%, versus 2.4% for NextEra Energy, Inc. (NEE).
08Is FE or NEE better for a retirement portfolio?
For long-horizon retirement investors, FirstEnergy Corp. (FE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.07), 3.4% yield). Both have compounded well over 10 years (FE: +99.6%, NEE: +287.2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FE and NEE?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: FE is a small-cap income-oriented stock; NEE is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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