SREA vs NEE

For growth investors, NextEra Energy, Inc.

(NEE) is the stronger pick with 11. 0% revenue growth year-over-year, versus 3. 9% for Sempra (SREA). Sempra (SREA) offers the better valuation at 7. 8x trailing P/E (4. 2x 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, Sempra (SREA) is the cheapest at 7.

8x versus NextEra Energy, Inc. at 29. 0x. On forward P/E, Sempra is actually cheaper at 4. 2x.

Over the past 5 years, NextEra Energy, Inc.

(NEE) delivered a total return of +42. 0%, compared to +5. 6% for Sempra (SREA). Over 10 years, the gap is even starker: NEE returned +274. 2% versus SREA's +24. 5%. 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 Sempra's 0. 83β — meaning SREA is approximately 299% more volatile than NEE relative to the S&P 500. On balance sheet safety, Sempra (SREA) carries a lower debt/equity ratio of 89% 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 3. 9% for Sempra (SREA). On earnings-per-share growth, the picture is similar: NextEra Energy, Inc. grew EPS -2. 4% year-over-year, compared to -37. 8% 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 13. 4% for Sempra — 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 23. 7% for SREA. 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, Sempra (SREA) trades at 4.

2x forward P/E versus 23. 6x for NextEra Energy, Inc. — 19. 4x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

Sempra (SREA) offers the highest yield at 11. 4%, versus 2. 3% for NextEra Energy, Inc. (NEE).

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). Both have compounded well over 10 years (NEE: +274. 2%, SREA: +24. 5%), 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: SREA is a mid-cap deep-value 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.