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Compare Stocks › NEE vs XOM

NextEra Energy, Inc. (NEE) vs Exxon Mobil Corporation (XOM): 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%. XOM is overvalued at $138, with an intrinsic value of $109 and a margin of safety of -26%. Of the two, XOM has the wider margin of safety.

NEE
NextEra Energy, Inc.
$86.75
VS
XOM
Exxon Mobil Corporation
$137.81

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.
XOM
  • ★Altman Z-Score of 4.16 indicates very low bankruptcy risk — the company is firmly in the safe zone.

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.
XOM
  • ⚠ROIC has declined by 12.0 percentage points over the past 4 years, which may signal competitive erosion.
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Trailing P/E of 23.2x is 81% above the historical average of 12.8x — the stock trades at a premium to its own history.

Key Valuation Metrics

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NEE
XOM
Valuation
$-18.45B
Free Cash Flow
$23.61B
-10.20%
FCF Yield
4.13%
22.02
Trailing P/E
23.20
19.71
Forward P/E
12.93
Quality & Moat
3.88%
ROIC
5.30%
10.32%
ROE
9.87%
61.40%
Gross Margin
29.77%
1.90
PEG Ratio
1.18
Balance Sheet Safety
1.54
Net Debt / Equity
0.15
N/A
Interest Coverage
N/A
7.23
Net Debt / EBITDA
0.70
2.89%
Dividend Yield
2.90%
NEE: 2Ties: 3XOM: 7
NEEXOM

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.

XOM

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
XOM
$1.06
created per $1 retained over 3 years
Value Creator
Σ Retained
$49.66B
Δ Market Cap
+$52.66B
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
XOM
26.4% Overvalued
Price is 26.4% above estimated fair value
Current Price: $137.81
Fair Value: $109.03
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.

XOM

What growth rate is the market pricing in at $138?

+11.2%
Market-Implied FCF Growth Rate

Market pricing in significantly higher growth than history — aggressive.

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.
XOM
48/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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.
XOM
-2.74
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.
XOM
Insiders 0.1%Institutions 68.8%Retail & Other 31.1%
No. of Institutional Holders5,715
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
XOM
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
XOM
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
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.
XOM
FearGreed
😐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.

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)
XOM
⚪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)
View NEE Full AnalysisView XOM Full Analysis

Frequently Asked Questions: NEE vs XOM

Is NextEra Energy, Inc. or Exxon Mobil Corporation more undervalued in 2026?▼

Based on our discounted cash flow model, XOM trades at a -26.4% margin of safety (intrinsic value $109 vs. price $138), compared to NEE's -224.0% margin of safety (intrinsic $27 vs. $87).

Which stock has a wider economic moat, NextEra Energy, Inc. or Exxon Mobil Corporation?▼

XOM scores 48/100 (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 NextEra Energy, Inc. in financial distress?▼

NEE's Altman Z-Score of 1.1 places it in the Distress zone, signaling elevated bankruptcy risk. XOM scores 4.2 (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 Exxon Mobil Corporation?▼

Exxon Mobil Corporation (XOM) generates a 4.1% 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 Exxon Mobil Corporation?▼

XOM earns 5.3% 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 Exxon Mobil Corporation's?▼

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