Comprehensive Stock Comparison
Compare Verizon Communications Inc. (VZ) 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 VZ's 2.5% |
| Value | VZ | Lower P/E (10.2x vs 23.3x) |
| Quality / Margins | NEE | 24.9% net margin vs VZ's 12.4% |
| Stability / Safety | VZ | Beta 0.10 vs NEE's 0.35 |
| Dividends | VZ | 5.4% yield, 10-year raise streak, vs NEE's 2.4% |
| Momentum (1Y) | NEE | +37.8% vs VZ's +22.7% |
| Efficiency (ROA) | VZ | 4.3% 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
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Verizon is a telecommunications giant providing wireless and wireline connectivity services to consumers and businesses across the United States. It generates revenue primarily from wireless service plans (~70% of total revenue) and equipment sales, supplemented by Fios broadband, video, and business solutions. The company's key advantage is its extensive nationwide network infrastructure—particularly its 5G leadership—which creates high switching costs for customers and barriers to entry for competitors.
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
VZ leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). NEE leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
VZ is the larger business by revenue, generating $138.5B annually — 5.0x NEE's $27.5B. NEE is the more profitable business, keeping 24.9% of every revenue dollar as net income compared to VZ's 12.4%. On growth, NEE holds the edge at +21.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| RevenueTrailing 12 months | $138.5B | $27.5B |
| EBITDAEarnings before interest/tax | $47.8B | $15.3B |
| Net IncomeAfter-tax profit | $17.2B | $6.8B |
| Free Cash FlowCash after capex | $23.1B | -$28.3B |
| Gross MarginGross profit ÷ Revenue | +55.6% | +62.8% |
| Operating MarginEBIT ÷ Revenue | +21.2% | +30.1% |
| Net MarginNet income ÷ Revenue | +12.4% | +24.9% |
| FCF MarginFCF ÷ Revenue | +16.7% | -103.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.5% | +21.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +50.0% | +25.9% |
Valuation Metrics
At 12.3x trailing earnings, VZ trades at a 57% valuation discount to NEE's 28.5x P/E. On an enterprise value basis, VZ's 8.3x EV/EBITDA is more attractive than NEE's 18.8x.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| Market CapShares × price | $211.4B | $195.3B |
| Enterprise ValueMkt cap + debt − cash | $393.0B | $288.1B |
| Trailing P/EPrice ÷ TTM EPS | 12.35x | 28.50x |
| Forward P/EPrice ÷ next-FY EPS est. | 10.22x | 23.33x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.65x |
| EV / EBITDAEnterprise value multiple | 8.25x | 18.78x |
| Price / SalesMarket cap ÷ Revenue | 1.53x | 7.11x |
| Price / BookPrice ÷ Book value/share | 2.01x | 2.95x |
| Price / FCFMarket cap ÷ FCF | 10.51x | — |
Profitability & Efficiency
VZ delivers a 16.3% return on equity — every $100 of shareholder capital generates $16 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 VZ's 1.90x. On the Piotroski fundamental quality scale (0–9), VZ scores 6/9 vs NEE's 5/9, reflecting solid financial health.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| ROE (TTM)Return on equity | +16.3% | +10.3% |
| ROA (TTM)Return on assets | +4.3% | +3.2% |
| ROICReturn on invested capital | +8.0% | +4.1% |
| ROCEReturn on capital employed | +8.8% | +4.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 1.90x | 1.44x |
| Net DebtTotal debt minus cash | $181.5B | $92.8B |
| Cash & Equiv.Liquid assets | $19.0B | $2.8B |
| Total DebtShort + long-term debt | $200.6B | $95.6B |
| Interest CoverageEBIT ÷ Interest expense | 4.37x | 1.81x |
Total Returns (with DRIP)
A $10,000 investment in NEE five years ago would be worth $13,627 today (with dividends reinvested), compared to $11,437 for VZ. Over the past 12 months, NEE leads with a +37.8% total return vs VZ's +22.7%. The 3-year compound annual growth rate (CAGR) favors VZ at 14.5% vs NEE's 12.1% — a key indicator of consistent wealth creation.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| YTD ReturnYear-to-date | +25.4% | +16.6% |
| 1-Year ReturnPast 12 months | +22.7% | +37.8% |
| 3-Year ReturnCumulative with dividends | +49.9% | +41.0% |
| 5-Year ReturnCumulative with dividends | +14.4% | +36.3% |
| 10-Year ReturnCumulative with dividends | +48.3% | +287.2% |
| CAGR (3Y)Annualised 3-year return | +14.5% | +12.1% |
Risk & Volatility
VZ is the less volatile stock with a 0.10 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.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.10x | 0.35x |
| 52-Week HighHighest price in past year | $50.48 | $95.91 |
| 52-Week LowLowest price in past year | $10.60 | $61.72 |
| % of 52W HighCurrent price vs 52-week peak | +99.3% | +97.8% |
| RSI (14)Momentum oscillator 0–100 | 66.9 | 56.6 |
| Avg Volume (50D)Average daily shares traded | 28.1M | 7.5M |
Analyst Outlook
Wall Street rates VZ as "Hold" and NEE as "Buy". Consensus price targets imply -0.5% upside for NEE (target: $93) vs -1.6% for VZ (target: $49). For income investors, VZ offers the higher dividend yield at 5.41% vs NEE's 2.39%.
| Metric | VZVerizon Communica… | NEENextEra Energy, I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $49.36 | $93.27 |
| # AnalystsCovering analysts | 60 | 36 |
| Dividend YieldAnnual dividend ÷ price | +5.4% | +2.4% |
| Dividend StreakConsecutive years of raises | 10 | 30 |
| Dividend / ShareAnnual DPS | $2.71 | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 100 | 77.83 | -22.2% |
| NextEra Energy, Inc. (NEE) | 100 | 128.68 | +28.7% |
NextEra Energy, Inc. (NEE) returned +36% over 5 years vs Verizon Communicati… (VZ)'s +14%. A $10,000 investment in NEE 5 years ago would be worth $13,627 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Verizon Communicati… (VZ) | $126.0B | $138.2B | +9.7% |
| NextEra Energy, Inc. (NEE) | $16.1B | $27.5B | +70.3% |
Verizon Communications Inc.'s revenue grew from $126.0B (2016) to $138.2B (2025) — a 1.0% 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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 10.4% | 12.4% | +19.3% |
| NextEra Energy, Inc. (NEE) | 18.0% | 24.9% | +37.8% |
Verizon Communications Inc.'s net margin went from 10% (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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 7.2 | 10 | +38.9% |
| NextEra Energy, Inc. (NEE) | 13.8 | 24.4 | +76.8% |
Verizon Communications Inc. has traded in a 7x–15x P/E range over 9 years; current trailing P/E is ~12x. 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 |
|---|---|---|---|
| Verizon Communicati… (VZ) | 3.21 | 4.06 | +26.5% |
| NextEra Energy, Inc. (NEE) | 1.56 | 3.29 | +110.9% |
Verizon Communications Inc.'s EPS grew from $3.21 (2016) to $4.06 (2025) — a 3% CAGR. NextEra Energy, Inc.'s EPS grew from $1.56 (2016) to $3.29 (2025) — a 9% CAGR.
Chart 6Free Cash Flow — 5 Years
Verizon Communications Inc. generated $20B FCF in 2025 (+173% vs 2021). NextEra Energy, Inc. generated $-12B FCF in 2025 (-101% vs 2021).
VZ vs NEE: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is VZ or NEE a better buy right now?
Verizon Communications Inc. (VZ) offers the better valuation at 12.3x trailing P/E (10.2x 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.
02Which has the better valuation — VZ or NEE?
On trailing P/E, Verizon Communications Inc. (VZ) is the cheapest at 12.3x versus NextEra Energy, Inc. at 28.5x. On forward P/E, Verizon Communications Inc. is actually cheaper at 10.2x.
03Which is the better long-term investment — VZ or NEE?
Over the past 5 years, NextEra Energy, Inc. (NEE) delivered a total return of +36.3%, compared to +14.4% for Verizon Communications Inc. (VZ). A $10,000 investment in NEE five years ago would be worth approximately $14K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NEE returned +287.2% versus VZ's +48.3%. 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 — VZ or NEE?
By beta (market sensitivity over 5 years), Verizon Communications Inc. (VZ) is the lower-risk stock at 0.10β versus NextEra Energy, Inc.'s 0.35β — meaning NEE is approximately 250% more volatile than VZ relative to the S&P 500. On balance sheet safety, NextEra Energy, Inc. (NEE) carries a lower debt/equity ratio of 144% versus 190% for Verizon Communications Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — VZ or NEE?
NextEra Energy, Inc. (NEE) is the more profitable company, earning 24.9% net margin versus 12.4% for Verizon Communications 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 21.2% for VZ. 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 VZ or NEE more undervalued right now?
On forward earnings alone, Verizon Communications Inc. (VZ) trades at 10.2x forward P/E versus 23.3x for NextEra Energy, Inc. — 13.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NEE: -0.5% to $93.27.
07Which pays a better dividend — VZ or NEE?
All stocks in this comparison pay dividends. Verizon Communications Inc. (VZ) offers the highest yield at 5.4%, versus 2.4% for NextEra Energy, Inc. (NEE).
08Is VZ or NEE better for a retirement portfolio?
For long-horizon retirement investors, Verizon Communications Inc. (VZ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.10), 5.4% yield). Both have compounded well over 10 years (VZ: +48.3%, 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 VZ and NEE?
These companies operate in different sectors (VZ (Communication Services) and NEE (Utilities)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: VZ is a large-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.
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- Sector: Communication Services
- Market Cap > $100B
- Net Margin > 7%
- Dividend Yield > 2.1%