Diversified Utilities
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NWE vs NEE
Revenue, margins, valuation, and 5-year total return — side by side.
Regulated Electric
NWE vs NEE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Diversified Utilities | Regulated Electric |
| Market Cap | $4.45B | $194.60B |
| Revenue (TTM) | $1.64B | $27.93B |
| Net Income (TTM) | $168M | $8.18B |
| Gross Margin | 61.9% | 47.8% |
| Operating Margin | 19.2% | 29.5% |
| Forward P/E | 19.3x | 23.1x |
| Total Debt | $3.29B | $95.62B |
| Cash & Equiv. | $9M | $2.81B |
NWE vs NEE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Northwestern Energy… (NWE) | 100 | 120.4 | +20.4% |
| NextEra Energy, Inc. (NEE) | 100 | 146.1 | +46.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NWE vs NEE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
NWE is the clearest fit if your priority is sleep-well-at-night and defensive.
- Lower volatility, beta 0.24, current ratio 0.72x
- Beta 0.24, yield 3.6%, current ratio 0.72x
- Lower P/E (19.3x vs 23.1x)
NEE carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 30 yrs, beta 0.21, yield 2.4%
- Rev growth 11.0%, EPS growth -2.4%, 3Y rev CAGR 9.4%
- 266.0% 10Y total return vs NWE's 65.7%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 11.0% revenue growth vs NWE's 6.4% | |
| Value | Lower P/E (19.3x vs 23.1x) | |
| Quality / Margins | 29.3% margin vs NWE's 10.2% | |
| Stability / Safety | Beta 0.21 vs NWE's 0.24 | |
| Dividends | 3.6% yield, 20-year raise streak, vs NEE's 2.4% | |
| Momentum (1Y) | +42.0% vs NWE's +30.2% | |
| Efficiency (ROA) | 3.9% ROA vs NWE's 2.0%, ROIC 4.1% vs 4.0% |
NWE vs NEE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
NWE vs NEE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
NEE leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NEE is the larger business by revenue, generating $27.9B annually — 17.0x NWE's $1.6B. NEE is the more profitable business, keeping 29.3% of every revenue dollar as net income compared to NWE's 10.2%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $27.9B |
| EBITDAEarnings before interest/tax | $569M | $15.5B |
| Net IncomeAfter-tax profit | $168M | $8.2B |
| Free Cash FlowCash after capex | -$148M | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +61.9% | +47.8% |
| Operating MarginEBIT ÷ Revenue | +19.2% | +29.5% |
| Net MarginNet income ÷ Revenue | +10.2% | +29.3% |
| FCF MarginFCF ÷ Revenue | -9.0% | -13.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.6% | +7.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -17.6% | +160.0% |
Valuation Metrics
NWE leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 24.6x trailing earnings, NWE trades at a 13% valuation discount to NEE's 28.4x P/E. On an enterprise value basis, NWE's 13.4x EV/EBITDA is more attractive than NEE's 18.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $4.5B | $194.6B |
| Enterprise ValueMkt cap + debt − cash | $7.7B | $287.4B |
| Trailing P/EPrice ÷ TTM EPS | 24.63x | 28.36x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.30x | 23.07x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.64x |
| EV / EBITDAEnterprise value multiple | 13.44x | 18.73x |
| Price / SalesMarket cap ÷ Revenue | 2.77x | 7.08x |
| Price / BookPrice ÷ Book value/share | 1.54x | 2.93x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
Evenly matched — NWE and NEE each lead in 4 of 8 comparable metrics.
Profitability & Efficiency
NEE delivers a 12.7% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $6 for NWE. NWE carries lower financial leverage with a 1.14x debt-to-equity ratio, signaling a more conservative balance sheet compared to NEE's 1.44x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +5.8% | +12.7% |
| ROA (TTM)Return on assets | +2.0% | +3.9% |
| ROICReturn on invested capital | +4.0% | +4.1% |
| ROCEReturn on capital employed | +4.4% | +4.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 1.14x | 1.44x |
| Net DebtTotal debt minus cash | $3.3B | $92.8B |
| Cash & Equiv.Liquid assets | $9M | $2.8B |
| Total DebtShort + long-term debt | $3.3B | $95.6B |
| Interest CoverageEBIT ÷ Interest expense | 2.25x | 1.99x |
Total Returns (Dividends Reinvested)
NEE leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NEE five years ago would be worth $13,819 today (with dividends reinvested), compared to $12,586 for NWE. Over the past 12 months, NEE leads with a +42.0% total return vs NWE's +30.2%. The 3-year compound annual growth rate (CAGR) favors NWE at 10.4% vs NEE's 9.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +12.9% | +16.1% |
| 1-Year ReturnPast 12 months | +30.2% | +42.0% |
| 3-Year ReturnCumulative with dividends | +34.7% | +31.0% |
| 5-Year ReturnCumulative with dividends | +25.9% | +38.2% |
| 10-Year ReturnCumulative with dividends | +65.7% | +266.0% |
| CAGR (3Y)Annualised 3-year return | +10.4% | +9.4% |
Risk & Volatility
Evenly matched — NWE and NEE each lead in 1 of 2 comparable metrics.
Risk & Volatility
NEE is the less volatile stock with a 0.21 beta — it tends to amplify market swings less than NWE's 0.24 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.24x | 0.21x |
| 52-Week HighHighest price in past year | $75.18 | $98.75 |
| 52-Week LowLowest price in past year | $50.46 | $63.88 |
| % of 52W HighCurrent price vs 52-week peak | +96.3% | +94.5% |
| RSI (14)Momentum oscillator 0–100 | 51.8 | 54.3 |
| Avg Volume (50D)Average daily shares traded | 462K | 8.7M |
Analyst Outlook
Evenly matched — NWE and NEE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates NWE as "Hold" and NEE as "Buy". Consensus price targets imply 5.2% upside for NEE (target: $98) vs -8.4% for NWE (target: $66). For income investors, NWE offers the higher dividend yield at 3.63% vs NEE's 2.40%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $66.33 | $98.13 |
| # AnalystsCovering analysts | 18 | 36 |
| Dividend YieldAnnual dividend ÷ price | +3.6% | +2.4% |
| Dividend StreakConsecutive years of raises | 20 | 30 |
| Dividend / ShareAnnual DPS | $2.63 | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
NEE leads in 2 of 6 categories (Income & Cash Flow, Total Returns). NWE leads in 1 (Valuation Metrics). 3 tied.
NWE vs NEE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is NWE or NEE a better buy right now?
For growth investors, NextEra Energy, Inc.
(NEE) is the stronger pick with 11. 0% revenue growth year-over-year, versus 6. 4% for Northwestern Energy Group Inc (NWE). Northwestern Energy Group Inc (NWE) offers the better valuation at 24. 6x trailing P/E (19. 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 — NWE or NEE?
On trailing P/E, Northwestern Energy Group Inc (NWE) is the cheapest at 24.
6x versus NextEra Energy, Inc. at 28. 4x. On forward P/E, Northwestern Energy Group Inc is actually cheaper at 19. 3x.
03Which is the better long-term investment — NWE or NEE?
Over the past 5 years, NextEra Energy, Inc.
(NEE) delivered a total return of +38. 2%, compared to +25. 9% for Northwestern Energy Group Inc (NWE). Over 10 years, the gap is even starker: NEE returned +266. 0% versus NWE's +65. 7%. 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 — NWE or NEE?
By beta (market sensitivity over 5 years), NextEra Energy, Inc.
(NEE) is the lower-risk stock at 0. 21β versus Northwestern Energy Group Inc's 0. 24β — meaning NWE is approximately 15% more volatile than NEE relative to the S&P 500. On balance sheet safety, Northwestern Energy Group Inc (NWE) carries a lower debt/equity ratio of 114% versus 144% for NextEra Energy, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — NWE or NEE?
By revenue growth (latest reported year), NextEra Energy, Inc.
(NEE) is pulling ahead at 11. 0% versus 6. 4% for Northwestern Energy Group Inc (NWE). On earnings-per-share growth, the picture is similar: NextEra Energy, Inc. grew EPS -2. 4% year-over-year, compared to -19. 5% for Northwestern Energy Group 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.
06Which has better profit margins — NWE or NEE?
NextEra Energy, Inc.
(NEE) is the more profitable company, earning 24. 9% net margin versus 11. 2% for Northwestern Energy Group 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 20. 2% for NWE. At the gross margin level — before operating expenses — NWE leads at 82. 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.
07Is NWE or NEE more undervalued right now?
On forward earnings alone, Northwestern Energy Group Inc (NWE) trades at 19.
3x forward P/E versus 23. 1x for NextEra Energy, Inc. — 3. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NEE: 5. 2% to $98. 13.
08Which pays a better dividend — NWE or NEE?
All stocks in this comparison pay dividends.
Northwestern Energy Group Inc (NWE) offers the highest yield at 3. 6%, versus 2. 4% for NextEra Energy, Inc. (NEE).
09Is NWE or NEE better for a retirement portfolio?
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%, NWE: +65. 7%), 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.
10What are the main differences between NWE 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: NWE 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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