Comprehensive Stock Comparison
Compare T-Mobile US, Inc. (TMUS) vs NextEra Energy, Inc. (NEE) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NEE | 11.0% revenue growth vs TMUS's 8.5% |
| Value | TMUS | Lower P/E (20.8x vs 23.3x), PEG 0.70 vs 1.35 |
| Quality / Margins | NEE | 24.9% net margin vs TMUS's 12.4% |
| Stability / Safety | TMUS | Beta 0.19 vs NEE's 0.35 |
| Dividends | NEE | 2.4% yield, 30-year raise streak, vs TMUS's 1.7% |
| Momentum (1Y) | NEE | +37.8% vs TMUS's -17.8% |
| Efficiency (ROA) | TMUS | 5.0% ROA vs NEE's 3.2%, ROIC 8.0% vs 4.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
T-Mobile US is a major wireless telecommunications carrier providing mobile voice, messaging, and data services to consumers and businesses. It generates revenue primarily from postpaid and prepaid service plans—roughly 80% of total revenue—with the remainder coming from device sales and equipment installment plans. The company's key competitive advantage is its extensive 5G network—the largest in the U.S.—which it built through strategic spectrum acquisitions and the Sprint merger.
NextEra Energy is a major electric utility and clean energy developer that operates regulated utilities in Florida while also building renewable projects across North America. It makes money primarily through regulated utility operations — about 60% of earnings — and its competitive energy generation business that develops wind, solar, and battery storage projects. The company's key advantage is its massive scale in renewable energy development and its first-mover position in clean energy infrastructure, giving it unmatched project execution capabilities and cost advantages.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TMUS leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). NEE leads in 2 (Financial Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
TMUS is the larger business by revenue, generating $88.3B annually — 3.2x NEE's $27.5B. NEE is the more profitable business, keeping 24.9% of every revenue dollar as net income compared to TMUS's 12.4%. On growth, NEE holds the edge at +21.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| RevenueTrailing 12 months | $88.3B | $27.5B |
| EBITDAEarnings before interest/tax | $31.8B | $15.3B |
| Net IncomeAfter-tax profit | $11.0B | $6.8B |
| Free Cash FlowCash after capex | $10.5B | -$28.3B |
| Gross MarginGross profit ÷ Revenue | +43.1% | +62.8% |
| Operating MarginEBIT ÷ Revenue | +20.7% | +30.1% |
| Net MarginNet income ÷ Revenue | +12.4% | +24.9% |
| FCF MarginFCF ÷ Revenue | +11.9% | -103.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.3% | +21.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -26.6% | +25.9% |
Valuation Metrics
At 22.3x trailing earnings, TMUS trades at a 22% valuation discount to NEE's 28.5x P/E. Adjusting for growth (PEG ratio), TMUS offers better value at 0.75x vs NEE's 1.65x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| Market CapShares × price | $240.3B | $195.3B |
| Enterprise ValueMkt cap + debt − cash | $351.9B | $288.1B |
| Trailing P/EPrice ÷ TTM EPS | 22.33x | 28.50x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.77x | 23.33x |
| PEG RatioP/E ÷ EPS growth rate | 0.75x | 1.65x |
| EV / EBITDAEnterprise value multiple | 11.07x | 18.78x |
| Price / SalesMarket cap ÷ Revenue | 2.72x | 7.11x |
| Price / BookPrice ÷ Book value/share | 4.15x | 2.95x |
| Price / FCFMarket cap ÷ FCF | 23.23x | — |
Profitability & Efficiency
TMUS delivers a 18.6% return on equity — every $100 of shareholder capital generates $19 in annual profit, vs $10 for NEE. NEE carries lower financial leverage with a 1.44x debt-to-equity ratio, signaling a more conservative balance sheet compared to TMUS's 1.98x. On the Piotroski fundamental quality scale (0–9), TMUS scores 7/9 vs NEE's 5/9, reflecting strong financial health.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| ROE (TTM)Return on equity | +18.6% | +10.3% |
| ROA (TTM)Return on assets | +5.0% | +3.2% |
| ROICReturn on invested capital | +8.0% | +4.1% |
| ROCEReturn on capital employed | +9.6% | +4.7% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 1.98x | 1.44x |
| Net DebtTotal debt minus cash | $111.6B | $92.8B |
| Cash & Equiv.Liquid assets | $5.6B | $2.8B |
| Total DebtShort + long-term debt | $117.2B | $95.6B |
| Interest CoverageEBIT ÷ Interest expense | — | 1.81x |
Total Returns (with DRIP)
A $10,000 investment in TMUS five years ago would be worth $18,229 today (with dividends reinvested), compared to $13,627 for NEE. Over the past 12 months, NEE leads with a +37.8% total return vs TMUS's -17.8%. The 3-year compound annual growth rate (CAGR) favors TMUS at 16.6% vs NEE's 12.1% — a key indicator of consistent wealth creation.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| YTD ReturnYear-to-date | +9.3% | +16.6% |
| 1-Year ReturnPast 12 months | -17.8% | +37.8% |
| 3-Year ReturnCumulative with dividends | +58.4% | +41.0% |
| 5-Year ReturnCumulative with dividends | +82.3% | +36.3% |
| 10-Year ReturnCumulative with dividends | +507.1% | +287.2% |
| CAGR (3Y)Annualised 3-year return | +16.6% | +12.1% |
Risk & Volatility
TMUS is the less volatile stock with a 0.19 beta — it tends to amplify market swings less than NEE's 0.35 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NEE currently trades 97.8% from its 52-week high vs TMUS's 78.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.19x | 0.35x |
| 52-Week HighHighest price in past year | $276.49 | $95.91 |
| 52-Week LowLowest price in past year | $181.36 | $61.72 |
| % of 52W HighCurrent price vs 52-week peak | +78.5% | +97.8% |
| RSI (14)Momentum oscillator 0–100 | 56.7 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 5.1M | 7.5M |
Analyst Outlook
Wall Street rates TMUS as "Buy" and NEE as "Buy". Consensus price targets imply 18.6% upside for TMUS (target: $257) vs -0.5% for NEE (target: $93). For income investors, NEE offers the higher dividend yield at 2.39% vs TMUS's 1.68%.
| Metric | TMUST-Mobile US, Inc. | NEENextEra Energy, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $257.42 | $93.27 |
| # AnalystsCovering analysts | 53 | 36 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +2.4% |
| Dividend StreakConsecutive years of raises | 3 | 30 |
| Dividend / ShareAnnual DPS | $3.64 | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.2% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 100 | 209.01 | +109.0% |
| NextEra Energy, Inc. (NEE) | 100 | 128.68 | +28.7% |
T-Mobile US, Inc. (TMUS) returned +82% over 5 years vs NextEra Energy, Inc. (NEE)'s +36%. A $10,000 investment in TMUS 5 years ago would be worth $18,229 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | $37.5B | $88.3B | +135.6% |
| NextEra Energy, Inc. (NEE) | $16.1B | $27.5B | +70.3% |
T-Mobile US, Inc.'s revenue grew from $37.5B (2016) to $88.3B (2025) — a 10.0% CAGR. NextEra Energy, Inc.'s revenue grew from $16.1B (2016) to $27.5B (2025) — a 6.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 3.9% | 12.4% | +219.6% |
| NextEra Energy, Inc. (NEE) | 18.0% | 24.9% | +37.8% |
T-Mobile US, Inc.'s net margin went from 4% (2016) to 12% (2025). NextEra Energy, Inc.'s net margin went from 18% (2016) to 25% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 12.2 | 20.9 | +71.3% |
| NextEra Energy, Inc. (NEE) | 13.8 | 24.4 | +76.8% |
T-Mobile US, Inc. has traded in a 12x–68x P/E range over 9 years; current trailing P/E is ~22x. NextEra Energy, Inc. has traded in a 13x–52x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| T-Mobile US, Inc. (TMUS) | 1.69 | 9.72 | +475.1% |
| NextEra Energy, Inc. (NEE) | 1.56 | 3.29 | +110.9% |
T-Mobile US, Inc.'s EPS grew from $1.69 (2016) to $9.72 (2025) — a 21% CAGR. NextEra Energy, Inc.'s EPS grew from $1.56 (2016) to $3.29 (2025) — a 9% CAGR.
Chart 6Free Cash Flow — 5 Years
T-Mobile US, Inc. generated $10B FCF in 2025 (+233% vs 2021). NextEra Energy, Inc. generated $-12B FCF in 2025 (-101% vs 2021).
TMUS vs NEE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TMUS or NEE a better buy right now?
T-Mobile US, Inc. (TMUS) offers the better valuation at 22.3x trailing P/E (20.8x forward), making it the more compelling value choice. Analysts rate T-Mobile US, Inc. (TMUS) a "Buy" — based on 53 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 — TMUS or NEE?
On trailing P/E, T-Mobile US, Inc. (TMUS) is the cheapest at 22.3x versus NextEra Energy, Inc. at 28.5x. On forward P/E, T-Mobile US, Inc. is actually cheaper at 20.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: T-Mobile US, Inc. wins at 0.70x versus NextEra Energy, Inc.'s 1.35x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — TMUS or NEE?
Over the past 5 years, T-Mobile US, Inc. (TMUS) delivered a total return of +82.3%, compared to +36.3% for NextEra Energy, Inc. (NEE). A $10,000 investment in TMUS five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TMUS returned +507.1% versus NEE's +287.2%. 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 — TMUS or NEE?
By beta (market sensitivity over 5 years), T-Mobile US, Inc. (TMUS) is the lower-risk stock at 0.19β versus NextEra Energy, Inc.'s 0.35β — meaning NEE is approximately 79% more volatile than TMUS relative to the S&P 500. On balance sheet safety, NextEra Energy, Inc. (NEE) carries a lower debt/equity ratio of 144% versus 198% for T-Mobile US, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TMUS or NEE?
NextEra Energy, Inc. (NEE) is the more profitable company, earning 24.9% net margin versus 12.4% for T-Mobile US, 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 20.7% for TMUS. 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.
06Is TMUS or NEE more undervalued right now?
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, T-Mobile US, Inc. (TMUS) is the more undervalued stock at a PEG of 0.70x versus NextEra Energy, Inc.'s 1.35x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, T-Mobile US, Inc. (TMUS) trades at 20.8x forward P/E versus 23.3x for NextEra Energy, Inc. — 2.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TMUS: 18.6% to $257.42.
07Which pays a better dividend — TMUS or NEE?
All stocks in this comparison pay dividends. NextEra Energy, Inc. (NEE) offers the highest yield at 2.4%, versus 1.7% for T-Mobile US, Inc. (TMUS).
08Is TMUS or NEE better for a retirement portfolio?
For long-horizon retirement investors, T-Mobile US, Inc. (TMUS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.19), 1.7% yield, +507.1% 10Y return). Both have compounded well over 10 years (TMUS: +507.1%, NEE: +287.2%), 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.
09What are the main differences between TMUS and NEE?
These companies operate in different sectors (TMUS (Communication Services) and NEE (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. 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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