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NextEra Energy, Inc. (NEE) vs AT&T Inc. (T): Which Is the Better Buy in 2026?

As of 2026-06-19, NEE is overvalued at $87, with a DCF intrinsic value of $27 and a margin of safety of -224%. T is undervalued at $22, with an intrinsic value of $57 and a margin of safety of 62%. Of the two, T has the wider margin of safety.

NEE
NextEra Energy, Inc.
$86.75
VS
T
AT&T Inc.
$22.01

Rewards

NEE
  • ★Gross margin of 61.4% 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.
T
  • ★Free cash flow has grown at a 16.2% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $14.89 of earning power — management is an exceptional capital allocator.
  • ★FCF yield of 12.7% is historically attractive — the business generates significant cash relative to its price.

Risks

NEE
  • ⚠NextEra Energy, Inc. scores only 24/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠High leverage (1.54x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 7.2x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
T
  • ⚠Altman Z-Score of 0.89 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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NEE
T
Valuation
$-18.45B
Free Cash Flow
$19.44B
-10.20%
FCF Yield
12.71%
22.02
Trailing P/E
7.24
19.71
Forward P/E
8.64
Quality & Moat
3.88%
ROIC
7.90%
10.32%
ROE
18.37%
61.40%
Gross Margin
59.41%
1.90
PEG Ratio
1.62
Balance Sheet Safety
1.54
Net Debt / Equity
1.16
N/A
Interest Coverage
N/A
7.23
Net Debt / EBITDA
3.33
2.89%
Dividend Yield
4.95%
NEE: 0Ties: 2T: 10
NEET

Historical Fundamentals

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NEE

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.

T

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.

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.

$1 Retained Earnings Test

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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
T
$1.91
created per $1 retained over 3 years
Value Creator
Σ Retained
$22.78B
Δ Market Cap
+$43.59B
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

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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NEE
224.0% Overvalued
Price is 224.0% above estimated fair value
Current Price: $86.75
Fair Value: $26.77
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
T
61.6% Margin of Safety
Price is 61.6% below estimated fair value
Current Price: $22.01
Fair Value: $57.31
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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NEE

Requires positive FCF to compute implied growth rate.

T

What growth rate is the market pricing in at $22?

+2.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.2%

The market implies +2.5% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +4.2%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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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.

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.
T
57/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.

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.

Forensic Accounting

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NEE
-2.48
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.
T
-2.78
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.

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.

Ownership Breakdown

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NEE
Insiders 0.1%Institutions 87.0%Retail & Other 12.9%
No. of Institutional Holders3,865
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.
T
Insiders 0.1%Institutions 69.3%Retail & Other 30.6%
No. of Institutional Holders3,701
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.

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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NEE
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
T
0
Buys (3M)
0
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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NEE
0
Sells (3M)
18
Sells (12M)
Total value (12M): $33.58M
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
T
0
Sells (3M)
0
Sells (12M)
SABRINA SANDERS S
Officer
$41,348
@ $27.57 · 2025-05-28
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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NEE
FearGreed
😐Neutral(57/100)

"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.
T
FearGreed
😨Fear(34/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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.

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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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)
T
⚪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: Fear (34)
View NEE Full AnalysisView T Full Analysis

Frequently Asked Questions: NEE vs T

Is NextEra Energy, Inc. or AT&T Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, T trades at a 61.6% margin of safety (intrinsic value $57 vs. price $22), compared to NEE's -224.0% margin of safety (intrinsic $27 vs. $87).

Which stock has a wider economic moat, NextEra Energy, Inc. or AT&T Inc.?▼

T scores 57/100 (Narrow 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 AT&T Inc. in financial distress?▼

T's Altman Z-Score of 0.9 places it in the Distress zone, signaling elevated bankruptcy risk. NEE scores 1.1 (Distress zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, NextEra Energy, Inc. or AT&T Inc.?▼

AT&T Inc. (T) generates a 12.7% free cash flow yield, compared to NextEra Energy, Inc.'s -10.2%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, NextEra Energy, Inc. or AT&T Inc.?▼

T earns 7.9% ROIC versus NEE's 3.9%. 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, NextEra Energy, Inc.'s or AT&T Inc.'s?▼

T's dividend earns a safety score of 91/100 (Very Safe), compared to NEE's 54/100 (Borderline). T has raised its dividend for 2 consecutive years.

NEE vs T: Which Is the Better Buy in 2026? | SafetyMargin.io