NextEra Energy vs Brookfield Which Offers More Value?

NextEra Energy and Brookfield stocks are two prominent players in the energy sector, both with strong track records of delivering value to investors. NextEra Energy is a leading renewable energy company, known for its focus on wind and solar power generation. Brookfield, on the other hand, is a global asset management firm with a diverse portfolio that includes renewable energy assets. Both companies offer appealing investment opportunities for those looking to capitalize on the growing demand for sustainable energy solutions.

NextEra Energy or Brookfield?

When comparing NextEra Energy and Brookfield, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NextEra Energy and Brookfield.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NextEra Energy has a dividend yield of 3.33%, while Brookfield has a dividend yield of 0.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%. On the other hand, Brookfield reports a 5-year dividend growth of -10.22% year and a payout ratio of 58.98%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NextEra Energy P/E ratio at 22.42 and Brookfield's P/E ratio at 60.36. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NextEra Energy P/B ratio is 3.11 while Brookfield's P/B ratio is 1.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NextEra Energy has seen a 5-year revenue growth of 0.57%, while Brookfield's is 0.69%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NextEra Energy's ROE at 14.24% and Brookfield's ROE at 2.39%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.74 for NextEra Energy and $57.53 for Brookfield. Over the past year, NextEra Energy's prices ranged from $53.81 to $86.10, with a yearly change of 60.01%. Brookfield's prices fluctuated between $31.52 and $59.23, with a yearly change of 87.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.