NextEra Energy vs. GE Vernova: Which Energy Transition Stock Wins?

Decarbonization goals, tighter emissions standards and expanding clean-energy mandates are prompting utilities and corporations worldwide to accelerate their transition toward renewable power sources, such as wind, solar and hydropower. In this context, players like NextEra Energy NEE and GE Vernova GEV are drawing investor interest, given their strategic positioning in the evolving energy landscape.

The proportion of renewable energy sources in the world's power generation mix is continuously increasing, replacing fossil fuel-based generation and helping achieve climate and emission reduction goals. Long-term power purchase agreements, steady revenue flows, and the implementation of cutting-edge technology that boost dependability and efficiency have all contributed to the sector's increased financial appeal. Companies that focus on renewable energy tend to benefit from these factors.

Both NEE and GEV are major players in the global energy transition. NextEra Energy operates as a leading regulated utility and one of the largest renewable energy developers, offering stable earnings combined with clean-energy growth exposure. GE Vernova, on the other hand, provides power generation equipment, grid modernization solutions and renewable technologies that position it as a key enabler of the broader electrification and decarbonization trend.

Let’s compare the two stocks’ fundamentals to determine which one is the better investment option at present.

Factors Acting in Favor of NEE

NextEra Energy’s long-term earnings per share (EPS) growth outlook through 2028 is driven by continued additions of renewable assets to its generation portfolio and strong execution across all business segments. The company expects to achieve a compound annual growth rate of more than 8% through 2035, based on its 2025 adjusted EPS.

NextEra Energy Resources continues to work on its strategy of making long-term investments in clean energy assets. The company expects to add 76.5-107.6 gigawatts (GW) of new renewable capacity to its generation portfolio during 2026-2032 through clean energy investments. At present, NextEra Energy Resources has 29.8 GW in its backlog of signed contracts, providing clear visibility into the continued expansion of clean power generation.

Factors Acting in Favor of GEV

GE Vernova is positioned as a pure-play energy transition company, fully focused on power generation, grid modernization and decarbonization. Its strength lies in a diversified portfolio across three core segments — Power, Wind, and Electrification — enabling it to serve the entire electricity value chain, from traditional sources such as gas and nuclear power to renewable energy and advanced grid technologies.

In February 2026, GE Vernova launched GridOS for Distribution to help utilities manage distribution grids through a unified, intelligent software platform, boosting its recurring software revenue potential. The company also completed the full acquisition of Prolec GE, strengthening its Electrification segment, expanding its North American footprint, and enhancing its ability to meet rising demand for grid infrastructure.

How Do Zacks Estimates Compare for NEE & GEV?

The Zacks Consensus Estimate for NextEra Energy’s 2026 and 2027 EPS indicates a year-over-year increase of 7.82% and 8.9%, respectively. 
 

The Zacks Consensus Estimate for GE Vernova’s 2026 EPS indicates a decline of 21.09% and the same for 2027 EPS implies an improvement of 55.01% year over year.

Dividend Yield of NEE & GEV

Current dividend yield for NextEra Energy is 2.46%, while that for GE Vernova is 0.24%. The Zacks S&P 500 composite is 1.08%.

Valuation for NEE & GEV

NextEra Energy shares trade at a forward 12-month Price/Earnings (P/E F12M) of 22.73X compared with GE Vernova’s P/E F12M of 55.07X, making NEE relatively more attractive from a valuation standpoint.

NEE & GEV’s Return on Equity (ROE)

ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. NextEra Energy’s current ROE is 12.18% compared with GE Vernova’s 46.91%.

NEE & GEV’s Price Performance

In the past six months, shares of GE Vernova and NextEra Energy have increased 37.9% and 22.4%, respectively.

NEE or GEV: Which Is a Better Choice Now?

GE Vernova is a pure-play energy transition company with a diversified presence across Power, Wind, and Electrification, enabling it to serve the entire electricity value chain — from traditional generation to renewables and grid technologies. NextEra Energy’s long-term earnings growth through 2028 is supported by steady execution and continued expansion of its renewable generation portfolio.

However, our choice at the moment is NextEra Energy, given its stronger earnings growth, higher dividend yield, and more attractive valuation compared with GEV. Both GEV and NEE stocks carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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