ENPH vs NEE

For growth investors, NextEra Energy, Inc.

(NEE) is the stronger pick with 11. 0% revenue growth year-over-year, versus 10. 7% for Enphase Energy, Inc. (ENPH). Enphase Energy, Inc. (ENPH) offers the better valuation at 27. 8x trailing P/E (17. 8x 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, Enphase Energy, Inc.

(ENPH) is the cheapest at 27. 8x versus NextEra Energy, Inc. at 29. 0x. On forward P/E, Enphase Energy, Inc. is actually cheaper at 17. 8x. 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 Enphase Energy, Inc. 's 2. 82x — a reasonable growth-adjusted valuation.

Over the past 5 years, NextEra Energy, Inc.

(NEE) delivered a total return of +42. 0%, compared to -70. 6% for Enphase Energy, Inc. (ENPH). Over 10 years, the gap is even starker: ENPH returned +1765% versus NEE's +274. 2%. 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), NextEra Energy, Inc.

(NEE) is the lower-risk stock at 0. 21β versus Enphase Energy, Inc. 's 1. 70β — meaning ENPH is approximately 719% more volatile than NEE relative to the S&P 500. On balance sheet safety, Enphase Energy, Inc. (ENPH) carries a lower debt/equity ratio of 114% 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. 7% for Enphase Energy, Inc. (ENPH). On earnings-per-share growth, the picture is similar: Enphase Energy, Inc. grew EPS 72. 0% year-over-year, compared to -2. 4% for NextEra Energy, Inc.. Over a 3-year CAGR, NEE leads at 9. 4% 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 11. 7% for Enphase Energy, Inc. — 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 11. 2% for ENPH. 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 Enphase Energy, Inc. 's 2. 82x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Enphase Energy, Inc. (ENPH) trades at 17. 8x forward P/E versus 23. 6x for NextEra Energy, Inc. — 5. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ENPH: 21. 5% to $43. 48.

In this comparison, NEE (2.

3% yield) pays a dividend. ENPH does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, NextEra Energy, Inc.

(NEE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 21), 2. 3% yield, +274. 2% 10Y return). Enphase Energy, Inc. (ENPH) carries a higher beta of 1. 70 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NEE: +274. 2%, ENPH: +1765%), 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.

These companies operate in different sectors (ENPH (Energy) and NEE (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

NEE pays a dividend while ENPH does not, making them suitable for different income and tax situations. 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.