Comprehensive Stock Comparison
Compare NextEra Energy, Inc. (NEE) vs National Grid plc (NGG) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
Selected Stocks
Add up to 10 tickers. Use presets or search to get started.
Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NEE | 11.0% revenue growth vs NGG's -7.4% |
| Value | NEE | PEG 1.35 vs 2.23 |
| Quality / Margins | NEE | 24.9% net margin vs NGG's 12.7% |
| Stability / Safety | NGG | Beta 0.04 vs NEE's 0.35, lower leverage |
| Dividends | NEE | 2.4% yield, 30-year raise streak, vs NGG's 2.2% |
| Momentum (1Y) | NGG | +55.9% vs NEE's +37.8% |
| Efficiency (ROA) | NGG | 4.5% ROA vs NEE's 3.2%, ROIC 4.6% vs 4.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
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.
National Grid is a regulated utility that operates electricity and gas transmission and distribution networks in the UK and northeastern United States. It earns revenue through regulated asset returns — collecting fees from customers for using its infrastructure — with its UK transmission business contributing roughly 40% of operating profit and its US operations about 35%. The company's primary moat comes from its natural monopoly position as an owner of critical energy infrastructure, protected by high regulatory barriers to entry and long-term, stable rate-of-return frameworks.
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
NGG leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). NEE leads in 2 (Financial Metrics, Analyst Outlook).
Financial Metrics (TTM)
NGG and NEE operate at a comparable scale, with $36.8B and $27.5B in trailing revenue. NEE is the more profitable business, keeping 24.9% of every revenue dollar as net income compared to NGG's 12.7%. On growth, NEE holds the edge at +21.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| RevenueTrailing 12 months | $27.5B | $36.8B |
| EBITDAEarnings before interest/tax | $15.3B | $12.5B |
| Net IncomeAfter-tax profit | $6.8B | $4.7B |
| Free Cash FlowCash after capex | -$28.3B | -$4.8B |
| Gross MarginGross profit ÷ Revenue | +62.8% | +100.0% |
| Operating MarginEBIT ÷ Revenue | +30.1% | +24.3% |
| Net MarginNet income ÷ Revenue | +24.9% | +12.7% |
| FCF MarginFCF ÷ Revenue | -103.0% | -13.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +21.9% | -11.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +25.9% | -7.1% |
Valuation Metrics
At 23.6x trailing earnings, NGG trades at a 17% valuation discount to NEE's 28.5x P/E. Adjusting for growth (PEG ratio), NEE offers better value at 1.65x vs NGG's 2.28x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| Market CapShares × price | $195.3B | $93.2B |
| Enterprise ValueMkt cap + debt − cash | $288.1B | $155.6B |
| Trailing P/EPrice ÷ TTM EPS | 28.50x | 23.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.33x | 23.15x |
| PEG RatioP/E ÷ EPS growth rate | 1.65x | 2.28x |
| EV / EBITDAEnterprise value multiple | 18.78x | 16.27x |
| Price / SalesMarket cap ÷ Revenue | 7.11x | 3.77x |
| Price / BookPrice ÷ Book value/share | 2.95x | 1.81x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
NGG delivers a 12.6% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $10 for NEE. NGG carries lower financial leverage with a 1.26x debt-to-equity ratio, signaling a more conservative balance sheet compared to NEE's 1.44x. On the Piotroski fundamental quality scale (0–9), NGG scores 7/9 vs NEE's 5/9, reflecting strong financial health.
| Metric | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| ROE (TTM)Return on equity | +10.3% | +12.6% |
| ROA (TTM)Return on assets | +3.2% | +4.5% |
| ROICReturn on invested capital | +4.1% | +4.6% |
| ROCEReturn on capital employed | +4.7% | +5.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 1.44x | 1.26x |
| Net DebtTotal debt minus cash | $92.8B | $46.4B |
| Cash & Equiv.Liquid assets | $2.8B | $1.2B |
| Total DebtShort + long-term debt | $95.6B | $47.5B |
| Interest CoverageEBIT ÷ Interest expense | 1.81x | 2.73x |
Total Returns (with DRIP)
A $10,000 investment in NGG five years ago would be worth $19,895 today (with dividends reinvested), compared to $13,627 for NEE. Over the past 12 months, NGG leads with a +55.9% total return vs NEE's +37.8%. The 3-year compound annual growth rate (CAGR) favors NGG at 19.5% vs NEE's 12.1% — a key indicator of consistent wealth creation.
| Metric | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| YTD ReturnYear-to-date | +16.6% | +19.1% |
| 1-Year ReturnPast 12 months | +37.8% | +55.9% |
| 3-Year ReturnCumulative with dividends | +41.0% | +70.6% |
| 5-Year ReturnCumulative with dividends | +36.3% | +98.9% |
| 10-Year ReturnCumulative with dividends | +287.2% | +84.4% |
| CAGR (3Y)Annualised 3-year return | +12.1% | +19.5% |
Risk & Volatility
NGG is the less volatile stock with a 0.04 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 | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.35x | 0.04x |
| 52-Week HighHighest price in past year | $95.91 | $94.64 |
| 52-Week LowLowest price in past year | $61.72 | $59.35 |
| % of 52W HighCurrent price vs 52-week peak | +97.8% | +99.1% |
| RSI (14)Momentum oscillator 0–100 | 56.6 | 75.2 |
| Avg Volume (50D)Average daily shares traded | 7.5M | 695K |
Analyst Outlook
Wall Street rates NEE as "Buy" and NGG as "Buy". Consensus price targets imply -0.5% upside for NEE (target: $93) vs -8.8% for NGG (target: $86). For income investors, NEE offers the higher dividend yield at 2.39% vs NGG's 2.23%.
| Metric | NEENextEra Energy, I… | NGGNational Grid plc |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $93.27 | $85.50 |
| # AnalystsCovering analysts | 36 | 20 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +2.2% |
| Dividend StreakConsecutive years of raises | 30 | 0 |
| Dividend / ShareAnnual DPS | $2.24 | $1.56 |
| 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 |
|---|---|---|---|
| NextEra Energy, Inc. (NEE) | 100 | 128.68 | +28.7% |
| National Grid plc (NGG) | 100 | 130.71 | +30.7% |
National Grid plc (NGG) returned +99% over 5 years vs NextEra Energy, Inc. (NEE)'s +36%. A $10,000 investment in NGG 5 years ago would be worth $19,895 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| NextEra Energy, Inc. (NEE) | $16.1B | $27.5B | +70.3% |
| National Grid plc (NGG) | $13.2B | $18.4B | +39.1% |
NextEra Energy, Inc.'s revenue grew from $16.1B (2016) to $27.5B (2025) — a 6.1% CAGR. National Grid plc's revenue grew from $13.2B (2016) to $18.4B (2025) — a 3.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| NextEra Energy, Inc. (NEE) | 18.0% | 24.9% | +37.8% |
| National Grid plc (NGG) | 14.4% | 15.8% | +9.9% |
NextEra Energy, Inc.'s net margin went from 18% (2016) to 25% (2025). National Grid plc's net margin went from 14% (2016) to 16% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| NextEra Energy, Inc. (NEE) | 13.8 | 24.4 | +76.8% |
| National Grid plc (NGG) | 5.2 | 26.2 | +403.8% |
NextEra Energy, Inc. has traded in a 13x–52x P/E range over 9 years; current trailing P/E is ~29x. National Grid plc has traded in a 5x–33x P/E range over 9 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| NextEra Energy, Inc. (NEE) | 1.56 | 3.29 | +110.9% |
| National Grid plc (NGG) | 3.75 | 2.95 | -21.3% |
NextEra Energy, Inc.'s EPS grew from $1.56 (2016) to $3.29 (2025) — a 9% CAGR. National Grid plc's EPS grew from $3.75 (2016) to $2.95 (2025) — a -3% CAGR.
Chart 6Free Cash Flow — 5 Years
NextEra Energy, Inc. generated $-12B FCF in 2025 (-101% vs 2021). National Grid plc generated $-2B FCF in 2025 (-211% vs 2021).
NEE vs NGG: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NEE or NGG a better buy right now?
National Grid plc (NGG) offers the better valuation at 23.6x trailing P/E (23.1x 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 — NEE or NGG?
On trailing P/E, National Grid plc (NGG) is the cheapest at 23.6x versus NextEra Energy, Inc. at 28.5x. On forward P/E, National Grid plc is actually cheaper at 23.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NextEra Energy, Inc. wins at 1.35x versus National Grid plc's 2.23x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — NEE or NGG?
Over the past 5 years, National Grid plc (NGG) delivered a total return of +98.9%, compared to +36.3% for NextEra Energy, Inc. (NEE). A $10,000 investment in NGG five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NEE returned +287.2% versus NGG's +84.4%. 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 — NEE or NGG?
By beta (market sensitivity over 5 years), National Grid plc (NGG) is the lower-risk stock at 0.04β versus NextEra Energy, Inc.'s 0.35β — meaning NEE is approximately 700% more volatile than NGG relative to the S&P 500. On balance sheet safety, National Grid plc (NGG) carries a lower debt/equity ratio of 126% versus 144% for NextEra Energy, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — NEE or NGG?
NextEra Energy, Inc. (NEE) is the more profitable company, earning 24.9% net margin versus 15.8% for National Grid plc — 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 26.8% for NGG. At the gross margin level — before operating expenses — NGG leads at 77.4%, 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 NEE or NGG more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, NextEra Energy, Inc. (NEE) is the more undervalued stock at a PEG of 1.35x versus National Grid plc's 2.23x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, National Grid plc (NGG) trades at 23.1x forward P/E versus 23.3x for NextEra Energy, Inc. — 0.2x 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 — NEE or NGG?
All stocks in this comparison pay dividends. NextEra Energy, Inc. (NEE) offers the highest yield at 2.4%, versus 2.2% for National Grid plc (NGG).
08Is NEE or NGG better for a retirement portfolio?
For long-horizon retirement investors, National Grid plc (NGG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.04), 2.2% yield). Both have compounded well over 10 years (NGG: +84.4%, 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 NEE and NGG?
Both stocks operate in the Utilities sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that beat both.