Compare Stocks › HD vs NEE

Home Depot, Inc. (The) (HD) vs NextEra Energy, Inc. (NEE): Which Is the Better Buy in 2026?

As of 2026-08-03, HD is undervalued at $332, with a DCF intrinsic value of $248851992757 and a margin of safety of 100%. NEE is overvalued at $87, with an intrinsic value of $25 and a margin of safety of -251%. Of the two, HD has the wider margin of safety.

Home Depot, Inc. (The)

$331.96

NEE

NextEra Energy, Inc.

$86.92

Rewards

★Home Depot, Inc. (The) has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Home Depot, Inc. (The) scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

NEE

★Gross margin of 61.0% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Each dollar of retained earnings has created $3.56 of earning power — management is an exceptional capital allocator.
★Trailing P/E of 19.5x is 24% below the historical average of 25.7x — potentially undervalued relative to its own history.

Risks

⚠High leverage (4.48x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠11 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

NEE

⚠NextEra Energy, Inc. scores only 24/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
⚠High leverage (1.57x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠Net debt/EBITDA of 7.4x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.

Key Valuation Metrics

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NEE

Valuation

$10.13B

Free Cash Flow

$-17.77B

N/A

FCF Yield

-9.80%

23.58

Trailing P/E

19.53

20.63

Forward P/E

19.67

Quality & Moat

20.22%

ROIC

4.01%

128.38%

ROE

11.68%

33.13%

Gross Margin

61.02%

1.87

PEG Ratio

1.90

Balance Sheet Safety

4.48

Net Debt / Equity

1.57

N/A

Interest Coverage

N/A

2.49

Net Debt / EBITDA

7.35

2.81%

Dividend Yield

2.87%

HD: 4Ties: 4NEE: 3

HDNEE

Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

NEE

$1 Retained Earnings Test

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$-0.00

created per $1 retained over 3 years

Market Cap Declined

Σ Retained

$17.64B

Δ Market Cap

$-14.59

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

NEE

$0.13

created per $1 retained over 3 years

Value Destroyer

Σ Retained

$8.39B

Δ Market Cap

+$1.11B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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100.0% Margin of Safety

Price is 100.0% below estimated fair value

Current Price: $331.96

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $248851992757.04

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

NEE

251.5% Overvalued

Price is 251.5% above estimated fair value

Current Price: $86.92

Strongly undervalued

Strongly overvalued

Fair Value: $24.73

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $332?

-14.7%

Market-Implied Owner Earnings Growth

Standard FCF implies -9.0%

The market implies -14.7% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding -9.0%, reflecting heavy growth investment expected to generate future returns.

NEE

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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87/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

NEE

24/100

No Moat

70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though margin stability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Forensic Accounting

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-2.40

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

NEE

-2.48

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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Insiders 0.1%Institutions 75.9%Retail & Other 24.1%

No. of Institutional Holders5,059

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

NEE

Insiders 0.1%Institutions 87.0%Retail & Other 12.9%

No. of Institutional Holders3,837

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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Buys (3M)

Buys (12M)

BRENNEMAN GREGORY D

Director

$999,767

@ $346.66 · 2025-03-14

Open market purchases · includes direct & indirect ownership · excludes option exercises

NEE

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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Sells (3M)

Sells (12M)

Total value (12M): $23.56M

MCPHAIL RICHARD V

Chief Financial Officer

$940,670

@ $368.89 · 2026-03-04

DEATON JOHN A.

Officer

$661,617

@ $369.00 · 2026-03-04

ROSEBOROUGH TERESA WYNN

General Counsel

$1.00M

@ $348.52 · 2025-12-26

BROWN ANGIE

Chief Technology Officer

$695,948

@ $357.63 · 2025-12-12

BASTEK WILLIAM D

Officer

$974,445

@ $423.12 · 2025-09-12

BASTEK WILLIAM D

Officer

$1.55M

@ $410.23 · 2025-08-22

ROSEBOROUGH TERESA WYNN

General Counsel

$2.27M

@ $413.23 · 2025-08-22

DECKER EDWARD P.

Chief Executive Officer

$13.07M

@ $397.22 · 2025-08-21

BROWN ANGIE

Chief Technology Officer

$404,070

@ $404.07 · 2025-08-20

MCPHAIL RICHARD V

Chief Financial Officer

$1.36M

@ $403.66 · 2025-08-20

PADILLA HECTOR A

Officer

$640,609

@ $404.17 · 2025-08-20

DEATON JOHN A.

Officer

$3.29M

@ $369.99 · 2025-06-03

ROSEBOROUGH TERESA WYNN

General Counsel

$2.00M

@ $369.28 · 2025-05-28

SIDDIQUI FAHIM

Chief Technology Officer

$954,564

@ $367.14 · 2025-05-22

BASTEK WILLIAM D

Officer

$1.24M

@ $416.61 · 2024-11-22

HOURIGAN TIMOTHY A

Officer

$6.55M

@ $409.52 · 2024-11-18

PADILLA HECTOR A

Officer

$1.48M

@ $408.96 · 2024-11-14

CAMPBELL ANN-MARIE

Officer

$12.24M

@ $408.40 · 2024-11-14

ROSEBOROUGH TERESA WYNN

General Counsel

$9.03M

@ $408.91 · 2024-11-14

MCPHAIL RICHARD V

Chief Financial Officer

$2.65M

@ $408.45 · 2024-11-13

SCARDINO KIMBERLY R.

Officer

$617,100

@ $363.00 · 2024-08-19

ROSEBOROUGH TERESA WYNN

General Counsel

$1.87M

@ $359.32 · 2024-08-15

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

NEE

Sells (3M)

Sells (12M)

Total value (12M): $32.87M

DAGGS NICOLE J

Officer

$458,862

@ $93.00 · 2026-03-13

CREWS TERRELL KIRK II

Officer

$1.78M

@ $90.27 · 2026-03-09

MAY JAMES MICHAEL

Officer and Treasurer

$646,423

@ $90.27 · 2026-03-09

LEMASNEY MARK

Officer

$347,088

@ $90.27 · 2026-03-09

REAGAN RONALD R

Officer

$482,505

@ $95.00 · 2026-02-17

KETCHUM JOHN W.

Chief Executive Officer

$8.90M

@ $89.34 · 2026-02-09

SIEVING CHARLES E

Officer

$2.70M

@ $90.00 · 2026-02-04

REAGAN RONALD R

Officer

$1.68M

@ $90.00 · 2026-02-04

REAGAN RONALD R

Officer

$920,210

@ $85.00 · 2026-01-22

REAGAN RONALD R

Officer

$985,481

@ $81.25 · 2025-12-11

PIMENTEL ARMANDO JR.

Director

$12.18M

@ $83.91 · 2025-11-17

SIEVING CHARLES E

Officer

$906,880

@ $80.00 · 2025-10-03

LEMASNEY MARK

Officer

$62,943

@ $77.90 · 2025-10-01

LEMASNEY MARK

Officer

$63,365

@ $74.90 · 2025-09-25

LEMASNEY MARK

Officer

$60,827

@ $71.90 · 2025-09-12

DUNNE MICHAEL

Chief Financial Officer

$707,900

@ $70.79 · 2025-09-08

COFFEY ROBERT

Officer

$538,800

@ $71.84 · 2025-07-28

MAY JAMES MICHAEL

Officer and Treasurer

$168,718

@ $77.50 · 2025-07-22

SIEVING CHARLES E

Officer

$1.35M

@ $75.00 · 2025-05-16

SIEVING CHARLES E

Officer

$1.66M

@ $70.00 · 2025-05-09

MAY JAMES MICHAEL

Officer

$162,258

@ $68.09 · 2025-02-18

DAGGS NICOLE J

Officer

$302,809

@ $75.57 · 2024-11-12

SIEVING CHARLES E

Officer

$3.19M

@ $85.00 · 2024-09-16

PIMENTEL ARMANDO JR.

Officer of Subsidiary Company

$7.95M

@ $80.00 · 2024-08-26

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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😐Neutral(46/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

NEE

😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (46)

NEE

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)

View HD Full Analysis View NEE Full Analysis

Frequently Asked Questions: HD vs NEE

Is Home Depot, Inc. (The) or NextEra Energy, Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, HD trades at a 100.0% margin of safety (intrinsic value $248851992757 vs. price $332), compared to NEE's -251.5% margin of safety (intrinsic $25 vs. $87).

Which stock has a wider economic moat, Home Depot, Inc. (The) or NextEra Energy, Inc.?▼

HD scores 87/100 (Wide moat), while NEE scores 24/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is NextEra Energy, Inc. in financial distress?▼

NEE's Altman Z-Score of 1.1 places it in the Distress zone, signaling elevated bankruptcy risk. HD scores 3.5 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Home Depot, Inc. (The) or NextEra Energy, Inc.?▼

HD earns 20.2% ROIC versus NEE's 4.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Home Depot, Inc. (The)'s or NextEra Energy, Inc.'s?▼

HD's dividend earns a safety score of 69/100 (Safe), compared to NEE's 54/100 (Borderline). HD has raised its dividend for 3 consecutive years.