RUN vs NEE

For growth investors, Sunrun Inc.

(RUN) is the stronger pick with 45. 1% revenue growth year-over-year, versus 11. 0% for NextEra Energy, Inc. (NEE). Sunrun Inc. (RUN) offers the better valuation at 7. 9x trailing P/E (21. 2x forward), making it the more compelling value choice. Analysts rate Sunrun Inc. (RUN) 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, Sunrun Inc.

(RUN) is the cheapest at 7. 9x versus NextEra Energy, Inc. at 29. 3x. On forward P/E, Sunrun Inc. is actually cheaper at 21. 2x.

Over the past 5 years, NextEra Energy, Inc.

(NEE) delivered a total return of +43. 6%, compared to -67. 8% for Sunrun Inc. (RUN). Over 10 years, the gap is even starker: NEE returned +274. 2% versus RUN's +71. 1%. 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 Sunrun Inc. 's 2. 89β — meaning RUN is approximately 1295% more volatile than NEE relative to the S&P 500. On balance sheet safety, NextEra Energy, Inc. (NEE) carries a lower debt/equity ratio of 144% versus 5% for Sunrun Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sunrun Inc.

(RUN) is pulling ahead at 45. 1% versus 11. 0% for NextEra Energy, Inc. (NEE). On earnings-per-share growth, the picture is similar: Sunrun Inc. grew EPS 113. 3% 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 15. 2% for Sunrun 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 -4. 3% for RUN. 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.

On forward earnings alone, Sunrun Inc.

(RUN) trades at 21. 2x forward P/E versus 23. 6x for NextEra Energy, Inc. — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RUN: 34. 8% to $18. 14.

In this comparison, NEE (2.

3% yield) pays a dividend. RUN 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). Sunrun Inc. (RUN) carries a higher beta of 2. 89 — 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%, RUN: +71. 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 (RUN (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: RUN is a small-cap high-growth stock; NEE is a large-cap quality compounder stock. NEE pays a dividend while RUN 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.