GE Vernova vs. NextEra Energy: Which Energy Transition Stock Is Better?

Decarbonization targets, emissions regulations and clean-energy mandates are compelling utilities and corporations to accelerate their shift toward renewable energy sources, such as wind, solar and hydropower. Complementing this shift, companies like GE Vernova GEV and NextEra Energy NEE are becoming increasingly attractive investment opportunities due to their strong positioning in the energy transition.Renewables expanded their share of the global power mix, gradually displacing fossil fuel-based generation and supporting progress toward climate and emissions-reduction targets. Due to long-term contracts and usage of latest technology in many renewable energy projects and businesses continued to generate good returns from a financial standpoint.Renewable energy sources are well suited to meet the rising demand from the rapid expansion of data centers, driven by cloud computing and artificial intelligence. Declining installation costs for utility-scale solar, wind, and battery storage have made renewable energy projects increasingly economical and competitive with traditional power sources.GE Vernova and NextEra Energy are both tied to the energy transition — the global shift from fossil fuels to cleaner, more sustainable energy.Factors in Favor of GEVGE 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.The acquisition of the remaining 50% stake in Prolec GE is strategically important because it gives GE Vernova full control of a major grid-equipment manufacturer. This strengthens its leadership in the rapidly expanding global grid infrastructure market, where utilities are investing heavily to upgrade aging networks. Multiple structural trends — increased electrification of the economy, the rapid build-out of AI-driven data centers, continued renewable energy expansion, and a growing need for grid resilience and reliability — are driving the demand. By deepening its grid capabilities and expanding its geographic reach, GE Vernova is better positioned to capture long-term growth as global electricity demand continues to rise.Factors in Favor of NEENextEra Energy’s long-term earnings growth outlook through 2028 is supported by persistent additions of renewable assets to its generation portfolio and strong execution across all business segments. The company’s major capital projects continue to progress as planned, while the addition of new renewable projects further strengthens and expands its renewable portfolio.The company expects to add 36.5-46.5 gigawatt (GW) of new renewables in the 2024-2027 time frame to the generation portfolio via clean energy investments. In third-quarter 2025, NextEra Energy Resources added nearly 3 GW of renewable projects to the existing backlog. By the end of 2027, Energy Resources expects to operate a more than 70 GW generation and storage portfolio.Let’s compare the two stocks’ fundamentals to determine which one is the better investment option at present.How Do Zacks Estimates Compare for GEV & NEE?The Zacks Consensus Estimate for GE Vernova’s 2025 earnings per share (EPS) has declined 4.95% and the same for 2026 EPS has improved 4.49% in the past 60 days. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NextEra Energy’s 2025 EPS has remained unchanged and the same for 2026 EPS has improved 0.25% over the past 60 days. Image Source: Zacks Investment ResearchDividend Yield of GEV & NEECurrent dividend yield for GEV is 0.15%, while that for NextEra Energy is 2.85%. The Zacks S&P 500 composite is 1.08%.Valuation for GEV & NEEGEV shares trade at a forward 12-month Price/Earnings (P/E F12M) of 50.17X compared with NEE’s P/E F12M of 19.96X, making NEE relatively more attractive from a valuation standpoint.GEV & NEE’s Return on Equity (ROE)ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 17.07% compared with NextEra Energy’s 12.42%.GEV & NEE’s Price PerformanceIn the past three months, shares of GE Vernova and NextEra Energy have increased 3.9% and 10%, respectively.GEV or NEE: 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 full 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 better near-term earnings growth, price performance, dividend yield and better valuation. 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. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks