Compare Stocks › NEE vs PM

NextEra Energy, Inc. (NEE) vs Philip Morris International Inc. (PM): 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%. PM is overvalued at $178, with an intrinsic value of $139 and a margin of safety of -28%. Of the two, PM has the wider margin of safety.

NEE

NextEra Energy, Inc.

$86.75

Philip Morris International Inc.

$178.40

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.

★Philip Morris International Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Gross margin of 67.3% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Philip Morris International Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

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.

⚠PEG ratio of 2.57 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

Learn more →

NEE

Valuation

$-18.45B

Free Cash Flow

$8.58B

-10.20%

FCF Yield

3.08%

22.02

Trailing P/E

25.13

19.71

Forward P/E

19.54

Quality & Moat

3.88%

ROIC

22.73%

10.32%

ROE

N/A

61.40%

Gross Margin

67.28%

1.90

PEG Ratio

2.57

Balance Sheet Safety

1.54

Net Debt / Equity

N/A

Interest Coverage

N/A

7.23

Net Debt / EBITDA

2.50

2.89%

Dividend Yield

3.21%

NEE: 2Ties: 2PM: 6

NEEPM

Historical Fundamentals

Learn more →

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.

$1 Retained Earnings Test

Learn more →

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

$64.75

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$1.43B

Δ Market Cap

+$92.79B

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

Learn more →

NEE

224.0% Overvalued

Price is 224.0% above estimated fair value

Current Price: $86.75

Strongly undervalued

Strongly overvalued

Fair Value: $26.77

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

28.1% Overvalued

Price is 28.1% above estimated fair value

Current Price: $178.40

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $139.23

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

Learn more →

NEE

Requires positive FCF to compute implied growth rate.

What growth rate is the market pricing in at $178?

+12.1%

Market-Implied Owner Earnings Growth

Standard FCF implies +16.4%

The market implies +12.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +16.4%, reflecting heavy growth investment.

Economic Moat Score

Learn more →

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.

100/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.

Forensic Accounting

Learn more →

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.

-2.39

Unlikely Manipulator

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

M-Score Trend

Ownership Breakdown

Learn more →

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.

Insiders 0.2%Institutions 84.1%Retail & Other 15.7%

No. of Institutional Holders3,446

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

Insider Buying Activity

Learn more →

NEE

Buys (3M)

Buys (12M)

No open market insider purchases found.

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

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

Learn more →

NEE

Sells (3M)

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

Sells (3M)

Sells (12M)

Total value (12M): $27.72M

KENNEDY STACEY

Officer

$2.63M

@ $183.13 · 2026-02-20

BABEAU EMMANUEL

Officer

$6.14M

@ $181.61 · 2026-02-19

GUERIN YANN

Officer

$726,760

@ $181.69 · 2026-02-19

DE WILDE FREDERIC J

Officer

$3.65M

@ $182.58 · 2026-02-19

OLCZAK JACEK

Officer and Director

$14.57M

@ $182.18 · 2026-02-19

DAHLGREN LARS

Officer

$562,740

@ $152.96 · 2025-03-06

ANDOLINA MASSIMO

Officer

$2.73M

@ $156.05 · 2025-02-24

BABEAU EMMANUEL

Chief Financial Officer

$4.47M

@ $148.85 · 2025-02-20

GUERIN YANN

General Counsel

$378,200

@ $151.28 · 2025-02-20

CALANTZOPOULOS ANDRE

Chairman of the Board

$6.06M

@ $149.06 · 2025-02-20

BARTH WERNER

Officer

$1.49M

@ $148.67 · 2025-02-20

OLCZAK JACEK

Chief Executive Officer

$5.95M

@ $148.87 · 2025-02-20

DE WILDE FREDERIC J

Officer

$2.17M

@ $144.54 · 2025-02-07

VOLPETTI STEFANO

Officer

$1.32M

@ $132.48 · 2024-10-31

DE WILDE FREDERIC J

Officer

$3.27M

@ $130.96 · 2024-10-23

CALANTZOPOULOS ANDRE

Chairman of the Board

$13.23M

@ $129.85 · 2024-10-23

BARTH WERNER

Officer

$974,850

@ $129.98 · 2024-10-23

DE WILDE FREDERIC J

Officer

$2.39M

@ $119.30 · 2024-08-22

ANDOLINA MASSIMO

Officer

$1.04M

@ $115.35 · 2024-08-08

DE WILDE FREDERIC J

Officer

$2.26M

@ $113.01 · 2024-07-25

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

Learn more →

NEE

😐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.

😐Neutral(60/100)

"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

Learn more →

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)

⚪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 (60)

View NEE Full Analysis View PM Full Analysis

Frequently Asked Questions: NEE vs PM

Is NextEra Energy, Inc. or Philip Morris International Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, PM trades at a -28.1% margin of safety (intrinsic value $139 vs. price $178), compared to NEE's -224.0% margin of safety (intrinsic $27 vs. $87).

Which stock has a wider economic moat, NextEra Energy, Inc. or Philip Morris International Inc.?▼

PM scores 100/100 (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. PM scores 3.9 (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 company has better free cash flow, NextEra Energy, Inc. or Philip Morris International Inc.?▼

Philip Morris International Inc. (PM) generates a 3.1% 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 Philip Morris International Inc.?▼

PM earns 22.7% 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 Philip Morris International Inc.'s?▼

NEE's dividend earns a safety score of 54/100 (Borderline), compared to PM's 34/100 (Unsafe). NEE has raised its dividend for 3 consecutive years.