SRE vs NEE vs DUK vs SO

For growth investors, NextEra Energy, Inc.

(NEE) is the stronger pick with 11. 0% revenue growth year-over-year, versus 5. 7% for Sempra (SRE). Duke Energy Corporation (DUK) offers the better valuation at 19. 9x trailing P/E (18. 7x forward), making it the more compelling value choice. Analysts rate Sempra (SRE) a "Buy" — based on 25 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, Duke Energy Corporation (DUK) is the cheapest at 19.

9x versus Sempra at 29. 5x. On forward P/E, Sempra is actually cheaper at 18. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Duke Energy Corporation wins at 0. 63x versus The Southern Company's 3. 49x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, The Southern Company (SO) delivered a total return of +62.

8%, compared to +42. 0% for NextEra Energy, Inc. (NEE). Over 10 years, the gap is even starker: NEE returned +274. 2% versus DUK's +106. 8%. 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), Duke Energy Corporation (DUK) is the lower-risk stock at -0.

24β versus Sempra's 0. 37β — meaning SRE is approximately -252% more volatile than DUK relative to the S&P 500. On balance sheet safety, Sempra (SRE) carries a lower debt/equity ratio of 83% versus 171% for Duke Energy Corporation — 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 5. 7% for Sempra (SRE). On earnings-per-share growth, the picture is similar: Duke Energy Corporation grew EPS 10. 5% year-over-year, compared to -28. 3% for Sempra. 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 14. 7% for The Southern Company — 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 15. 9% for SRE. 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, Duke Energy Corporation (DUK) is the more undervalued stock at a PEG of 0. 63x versus The Southern Company's 3. 49x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sempra (SRE) trades at 18. 3x forward P/E versus 23. 6x for NextEra Energy, Inc. — 5. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SRE: 14. 2% to $107. 00.

All stocks in this comparison pay dividends.

Duke Energy Corporation (DUK) offers the highest yield at 3. 4%, versus 2. 3% for NextEra Energy, Inc. (NEE).

For long-horizon retirement investors, Duke Energy Corporation (DUK) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

24), 3. 4% yield, +106. 8% 10Y return). Both have compounded well over 10 years (DUK: +106. 8%, SRE: +119. 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.

In terms of investment character: SRE is a mid-cap quality compounder stock; NEE is a mid-cap quality compounder stock; DUK is a mid-cap income-oriented stock; SO 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.