Head to Head Survey: Eversource Energy (ES) and Nextera Energy Partners (NEP)

Eversource Energy (NYSE:ES) and Nextera Energy Partners (NYSE:NEP) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Eversource Energy and Nextera Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eversource Energy 12.51% 9.32% 2.83%
Nextera Energy Partners 13.55% 7.34% 2.61%

Valuation & Earnings

This table compares Eversource Energy and Nextera Energy Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eversource Energy $7.75 billion 2.57 $987.99 million $3.11 20.23
Nextera Energy Partners $807.00 million 3.19 -$62.00 million $0.66 69.62

Eversource Energy has higher revenue and earnings than Nextera Energy Partners. Eversource Energy is trading at a lower price-to-earnings ratio than Nextera Energy Partners, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

73.6% of Eversource Energy shares are held by institutional investors. Comparatively, 80.7% of Nextera Energy Partners shares are held by institutional investors. 0.5% of Eversource Energy shares are held by insiders. Comparatively, 0.5% of Nextera Energy Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Eversource Energy and Nextera Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eversource Energy 0 6 7 0 2.54
Nextera Energy Partners 0 5 4 0 2.44

Eversource Energy currently has a consensus target price of $63.40, suggesting a potential upside of 0.76%. Nextera Energy Partners has a consensus target price of $46.56, suggesting a potential upside of 1.33%. Given Nextera Energy Partners’ higher possible upside, analysts plainly believe Nextera Energy Partners is more favorable than Eversource Energy.

Risk and Volatility

Eversource Energy has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, Nextera Energy Partners has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Dividends

Eversource Energy pays an annual dividend of $2.02 per share and has a dividend yield of 3.2%. Nextera Energy Partners pays an annual dividend of $1.75 per share and has a dividend yield of 3.8%. Eversource Energy pays out 65.0% of its earnings in the form of a dividend. Nextera Energy Partners pays out 265.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy has increased its dividend for 2 consecutive years and Nextera Energy Partners has increased its dividend for 2 consecutive years.

Eversource Energy Company Profile

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates in three segments: Electric Distribution, Electric Transmission, and Natural Gas Distribution. It is involved in the transmission and distribution of electricity; and distribution of natural gas. The company operates water regulated utilities. It also provides water services to approximately 226,000 customers. It serves residential, commercial, industrial, municipal, fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire, the United States. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was founded in 1927 and is based in Springfield, Massachusetts.

Nextera Energy Partners Company Profile

NextEra Energy Partners, LP acquires, owns, and operates contracted clean energy projects in the United States and Canada. It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects with approximately 3,867 megawatts of capacity, as well as seven contracted natural gas pipeline assets. The company was founded in 2014 and is based in Juno Beach, Florida.

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