ATO vs. NEE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ATO and NEE, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
NEE’s market capitalization of 152.09 billion USD is significantly greater than ATO’s 24.19 billion USD, highlighting its more substantial market valuation.
With betas of 0.70 for ATO and 0.67 for NEE, both stocks show similar sensitivity to overall market movements.
| Symbol | ATO | NEE |
|---|---|---|
| Company Name | Atmos Energy Corporation | NextEra Energy, Inc. |
| Country | US | US |
| Sector | Utilities | Utilities |
| Industry | Regulated Gas | Regulated Electric |
| CEO | John Kevin Akers | John W. Ketchum |
| Price | 152.28 USD | 73.88 USD |
| Market Cap | 24.19 billion USD | 152.09 billion USD |
| Beta | 0.70 | 0.67 |
| Exchange | NYSE | NYSE |
| IPO Date | December 28, 1983 | June 19, 2014 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ATO and NEE by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ATO
9.05%
Regulated Gas Industry
- Max
- 11.45%
- Q3
- 11.45%
- Median
- 9.01%
- Q1
- 7.53%
- Min
- 6.41%
ATO’s Return on Equity of 9.05% is on par with the norm for the Regulated Gas industry, indicating its profitability relative to shareholder equity is typical for the sector.
NEE
11.07%
Regulated Electric Industry
- Max
- 18.07%
- Q3
- 12.49%
- Median
- 10.00%
- Q1
- 8.48%
- Min
- 5.02%
NEE’s Return on Equity of 11.07% is on par with the norm for the Regulated Electric industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ATO
4.73%
Regulated Gas Industry
- Max
- 8.99%
- Q3
- 5.97%
- Median
- 4.43%
- Q1
- 0.25%
- Min
- 0.00%
ATO’s Return on Invested Capital of 4.73% is in line with the norm for the Regulated Gas industry, reflecting a standard level of efficiency in generating profits from its capital base.
NEE
4.72%
Regulated Electric Industry
- Max
- 5.26%
- Q3
- 4.57%
- Median
- 3.97%
- Q1
- 3.33%
- Min
- 1.92%
In the upper quartile for the Regulated Electric industry, NEE’s Return on Invested Capital of 4.72% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ATO
25.35%
Regulated Gas Industry
- Max
- 25.35%
- Q3
- 14.67%
- Median
- 8.48%
- Q1
- 4.66%
- Min
- -6.69%
A Net Profit Margin of 25.35% places ATO in the upper quartile for the Regulated Gas industry, signifying strong profitability and more effective cost management than most of its peers.
NEE
21.81%
Regulated Electric Industry
- Max
- 22.24%
- Q3
- 15.98%
- Median
- 13.10%
- Q1
- 11.03%
- Min
- 3.79%
A Net Profit Margin of 21.81% places NEE in the upper quartile for the Regulated Electric industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ATO
33.30%
Regulated Gas Industry
- Max
- 45.15%
- Q3
- 28.16%
- Median
- 19.42%
- Q1
- 14.26%
- Min
- 3.90%
An Operating Profit Margin of 33.30% places ATO in the upper quartile for the Regulated Gas industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
NEE
30.56%
Regulated Electric Industry
- Max
- 31.57%
- Q3
- 25.65%
- Median
- 21.93%
- Q1
- 17.87%
- Min
- 8.99%
An Operating Profit Margin of 30.56% places NEE in the upper quartile for the Regulated Electric industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ATO | NEE |
|---|---|---|
| Return on Equity (TTM) | 9.05% | 11.07% |
| Return on Assets (TTM) | 4.21% | 2.84% |
| Return on Invested Capital (TTM) | 4.73% | 4.72% |
| Net Profit Margin (TTM) | 25.35% | 21.81% |
| Operating Profit Margin (TTM) | 33.30% | 30.56% |
| Gross Profit Margin (TTM) | 54.44% | 70.09% |
Financial Strength
Current Ratio
ATO
1.33
Regulated Gas Industry
- Max
- 1.57
- Q3
- 1.15
- Median
- 1.00
- Q1
- 0.69
- Min
- 0.38
ATO’s Current Ratio of 1.33 is in the upper quartile for the Regulated Gas industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
NEE
0.55
Regulated Electric Industry
- Max
- 1.48
- Q3
- 1.06
- Median
- 0.86
- Q1
- 0.73
- Min
- 0.28
NEE’s Current Ratio of 0.55 falls into the lower quartile for the Regulated Electric industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ATO
0.65
Regulated Gas Industry
- Max
- 1.67
- Q3
- 1.53
- Median
- 1.38
- Q1
- 0.83
- Min
- 0.02
Falling into the lower quartile for the Regulated Gas industry, ATO’s Debt-to-Equity Ratio of 0.65 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
NEE
1.80
Regulated Electric Industry
- Max
- 2.38
- Q3
- 1.97
- Median
- 1.65
- Q1
- 1.28
- Min
- 0.27
NEE’s Debt-to-Equity Ratio of 1.80 is typical for the Regulated Electric industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ATO
8.02
Regulated Gas Industry
- Max
- 4.65
- Q3
- 3.07
- Median
- 2.65
- Q1
- 1.77
- Min
- 1.22
With an Interest Coverage Ratio of 8.02, ATO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Regulated Gas industry. This stems from either robust earnings or a conservative debt load.
NEE
8.95
Regulated Electric Industry
- Max
- 3.07
- Q3
- 2.63
- Median
- 2.41
- Q1
- 2.30
- Min
- 1.87
With an Interest Coverage Ratio of 8.95, NEE demonstrates a superior capacity to service its debt, placing it well above the typical range for the Regulated Electric industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ATO | NEE |
|---|---|---|
| Current Ratio (TTM) | 1.33 | 0.55 |
| Quick Ratio (TTM) | 1.25 | 0.45 |
| Debt-to-Equity Ratio (TTM) | 0.65 | 1.80 |
| Debt-to-Asset Ratio (TTM) | 0.32 | 0.46 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.49 | 8.56 |
| Interest Coverage Ratio (TTM) | 8.02 | 8.95 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ATO and NEE. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ATO
2.24%
Regulated Gas Industry
- Max
- 6.99%
- Q3
- 4.15%
- Median
- 4.00%
- Q1
- 2.73%
- Min
- 0.00%
ATO’s Dividend Yield of 2.24% is in the lower quartile for the Regulated Gas industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
NEE
2.93%
Regulated Electric Industry
- Max
- 6.60%
- Q3
- 4.03%
- Median
- 3.30%
- Q1
- 3.06%
- Min
- 0.00%
NEE’s Dividend Yield of 2.93% is in the lower quartile for the Regulated Electric industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
ATO
46.20%
Regulated Gas Industry
- Max
- 87.89%
- Q3
- 74.00%
- Median
- 60.41%
- Q1
- 45.73%
- Min
- 0.00%
ATO’s Dividend Payout Ratio of 46.20% is within the typical range for the Regulated Gas industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
NEE
78.82%
Regulated Electric Industry
- Max
- 123.06%
- Q3
- 69.07%
- Median
- 62.27%
- Q1
- 52.66%
- Min
- 0.00%
NEE’s Dividend Payout Ratio of 78.82% is in the upper quartile for the Regulated Electric industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ATO | NEE |
|---|---|---|
| Dividend Yield (TTM) | 2.24% | 2.93% |
| Dividend Payout Ratio (TTM) | 46.20% | 78.82% |
Valuation
Price-to-Earnings Ratio
ATO
21.32
Regulated Gas Industry
- Max
- 23.74
- Q3
- 22.05
- Median
- 16.86
- Q1
- 15.06
- Min
- 10.79
ATO’s P/E Ratio of 21.32 is within the middle range for the Regulated Gas industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
NEE
27.58
Regulated Electric Industry
- Max
- 26.46
- Q3
- 21.71
- Median
- 19.07
- Q1
- 17.74
- Min
- 12.74
At 27.58, NEE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Regulated Electric industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ATO
3.14
Regulated Gas Industry
- Max
- 3.70
- Q3
- 3.36
- Median
- 3.17
- Q1
- 2.55
- Min
- 2.21
ATO’s Forward PEG Ratio of 3.14 is within the middle range of its peers in the Regulated Gas industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
NEE
3.09
Regulated Electric Industry
- Max
- 4.21
- Q3
- 3.10
- Median
- 2.78
- Q1
- 2.34
- Min
- 1.46
NEE’s Forward PEG Ratio of 3.09 is within the middle range of its peers in the Regulated Electric industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
Price-to-Sales Ratio
ATO
5.39
Regulated Gas Industry
- Max
- 3.36
- Q3
- 2.16
- Median
- 1.35
- Q1
- 1.06
- Min
- 0.32
With a P/S Ratio of 5.39, ATO trades at a valuation that eclipses even the highest in the Regulated Gas industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
NEE
6.02
Regulated Electric Industry
- Max
- 3.88
- Q3
- 3.19
- Median
- 2.68
- Q1
- 1.96
- Min
- 0.27
With a P/S Ratio of 6.02, NEE trades at a valuation that eclipses even the highest in the Regulated Electric industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
ATO
1.84
Regulated Gas Industry
- Max
- 2.11
- Q3
- 1.88
- Median
- 1.55
- Q1
- 1.24
- Min
- 1.10
ATO’s P/B Ratio of 1.84 is within the conventional range for the Regulated Gas industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
NEE
3.05
Regulated Electric Industry
- Max
- 2.95
- Q3
- 2.37
- Median
- 1.89
- Q1
- 1.43
- Min
- 0.55
At 3.05, NEE’s P/B Ratio is at an extreme premium to the Regulated Electric industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ATO | NEE |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 21.32 | 27.58 |
| Forward PEG Ratio (TTM) | 3.14 | 3.09 |
| Price-to-Sales Ratio (P/S, TTM) | 5.39 | 6.02 |
| Price-to-Book Ratio (P/B, TTM) | 1.84 | 3.05 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -18.53 | 34.53 |
| EV-to-EBITDA (TTM) | 14.09 | 23.49 |
| EV-to-Sales (TTM) | 7.17 | 9.47 |