FSLR vs NEE

For growth investors, First Solar, Inc.

(FSLR) is the stronger pick with 24. 1% revenue growth year-over-year, versus 11. 0% for NextEra Energy, Inc. (NEE). First Solar, Inc. (FSLR) offers the better valuation at 15. 1x trailing P/E (12. 0x forward), making it the more compelling value choice. Analysts rate First Solar, Inc. (FSLR) a "Buy" — based on 73 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, First Solar, Inc.

(FSLR) is the cheapest at 15. 1x versus NextEra Energy, Inc. at 28. 4x. On forward P/E, First Solar, Inc. is actually cheaper at 12. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: First Solar, Inc. wins at 0. 39x versus NextEra Energy, Inc. 's 1. 33x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, First Solar, Inc.

(FSLR) delivered a total return of +187. 6%, compared to +38. 2% for NextEra Energy, Inc. (NEE). Over 10 years, the gap is even starker: FSLR returned +324. 1% versus NEE's +266. 0%. 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 First Solar, Inc. 's 1. 39β — meaning FSLR is approximately 571% more volatile than NEE relative to the S&P 500. On balance sheet safety, First Solar, Inc. (FSLR) carries a lower debt/equity ratio of 5% versus 144% for NextEra Energy, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), First Solar, Inc.

(FSLR) is pulling ahead at 24. 1% versus 11. 0% for NextEra Energy, Inc. (NEE). On earnings-per-share growth, the picture is similar: First Solar, Inc. grew EPS 18. 2% year-over-year, compared to -2. 4% for NextEra Energy, Inc.. Over a 3-year CAGR, FSLR leads at 25. 8% 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.

First Solar, Inc.

(FSLR) is the more profitable company, earning 29. 3% net margin versus 24. 9% for NextEra Energy, Inc. — meaning it keeps 29. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FSLR leads at 32. 3% 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, First Solar, Inc. (FSLR) is the more undervalued stock at a PEG of 0. 39x versus NextEra Energy, Inc. 's 1. 33x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, First Solar, Inc. (FSLR) trades at 12. 0x forward P/E versus 23. 1x for NextEra Energy, Inc. — 11. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FSLR: 23. 1% to $264. 13.

In this comparison, NEE (2.

4% yield) pays a dividend. FSLR 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. 4% yield, +266. 0% 10Y return). Both have compounded well over 10 years (NEE: +266. 0%, FSLR: +324. 1%), 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 (FSLR (Energy) and NEE (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: FSLR is a mid-cap high-growth stock; NEE is a mid-cap quality compounder stock. NEE pays a dividend while FSLR 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.