Constellation Energy vs. NextEra Energy: Which Utilities Stock Is a Better Buy for 2027?

Constellation Energy (CEG) and NextEra Energy (NEE) are two prominent utility stocks that are positioned to benefit from the ongoing energy transition. Constellation Energy specializes in clean generation through its extensive nuclear fleet, while NextEra Energy combines a regulated Florida utility with a growing renewable energy development business.

Constellation Energy operates the largest private-sector nuclear fleet in the United States, providing electricity to approximately 2.5 million customers, including over three-quarters of the Fortune 100 companies. The company recently signed a 20-year power purchase agreement with Microsoft and a deal with Meta to power data centers with emissions-free nuclear energy. In the past year, Constellation reported a revenue growth of about 8.3% and a net margin of roughly 9.1%.

On the other hand, NextEra Energy's revenue reached nearly $27.5 billion in FY 2025, an increase of nearly 11% from the previous year. The company's net income was close to $6.8 billion, resulting in a net margin of around 24.9%. NextEra's revenue is supported by its dual threat business model, which includes Florida Power & Light, serving over six million customers, and NextEra Energy Resources, focusing on wind and solar generation for wholesale markets.

When comparing the two companies, Constellation Energy appears to be in a more favorable position based on its lower valuation metrics and strong growth prospects in the nuclear power sector. However, NextEra Energy's higher net margin and diversified revenue streams make it an attractive option as well. Ultimately, the choice between these two utility stocks will depend on the investor's risk tolerance, growth expectations, and preference for nuclear power versus renewable energy.