AWR vs NEE

For growth investors, NextEra Energy, Inc.

(NEE) is the stronger pick with 11. 0% revenue growth year-over-year, versus 10. 5% for American States Water Company (AWR). American States Water Company (AWR) offers the better valuation at 22. 5x trailing P/E (20. 4x 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.

On trailing P/E, American States Water Company (AWR) is the cheapest at 22.

5x versus NextEra Energy, Inc. at 29. 0x. On forward P/E, American States Water Company is actually cheaper at 20. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NextEra Energy, Inc. wins at 1. 36x versus American States Water Company's 2. 67x — a reasonable growth-adjusted valuation.

Over the past 5 years, NextEra Energy, Inc.

(NEE) delivered a total return of +42. 0%, compared to +5. 5% for American States Water Company (AWR). Over 10 years, the gap is even starker: NEE returned +274. 2% versus AWR's +120. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), American States Water Company (AWR) is the lower-risk stock at -0.

17β versus NextEra Energy, Inc. 's 0. 21β — meaning NEE is approximately -221% more volatile than AWR relative to the S&P 500. On balance sheet safety, American States Water Company (AWR) carries a lower debt/equity ratio of 90% versus 144% for NextEra Energy, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NextEra Energy, Inc.

(NEE) is pulling ahead at 11. 0% versus 10. 5% for American States Water Company (AWR). On earnings-per-share growth, the picture is similar: American States Water Company grew EPS 6. 3% year-over-year, compared to -2. 4% for NextEra Energy, Inc.. Over a 3-year CAGR, AWR leads at 10. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

NextEra Energy, Inc.

(NEE) is the more profitable company, earning 24. 9% net margin versus 19. 8% for American States Water Company — meaning it keeps 24. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AWR leads at 30. 9% versus 30. 1% for NEE. At the gross margin level — before operating expenses — NEE leads at 62. 8%, 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.

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. 36x versus American States Water Company's 2. 67x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, American States Water Company (AWR) trades at 20. 4x forward P/E versus 23. 6x for NextEra Energy, Inc. — 3. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AWR: 18. 0% to $89. 50.

All stocks in this comparison pay dividends.

American States Water Company (AWR) offers the highest yield at 2. 5%, versus 2. 3% for NextEra Energy, Inc. (NEE).

For long-horizon retirement investors, American States Water Company (AWR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

17), 2. 5% yield, +120. 3% 10Y return). Both have compounded well over 10 years (AWR: +120. 3%, NEE: +274. 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.

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.