Analyzing Nextera Energy Partners (NEP) & The Competition

Nextera Energy Partners (NYSE:NEP) is one of 107 publicly-traded companies in the “Electric services” industry, but how does it weigh in compared to its rivals? We will compare Nextera Energy Partners to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Dividends

Nextera Energy Partners pays an annual dividend of $3.67 per share and has a dividend yield of 34.9%. Nextera Energy Partners pays out -3,670.0% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.5% and pay out 88.5% of their earnings in the form of a dividend. Nextera Energy Partners is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Nextera Energy Partners and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nextera Energy Partners	$1.23 billion	-$10.00 million	-105.15
Nextera Energy Partners Competitors	$9.52 billion	$578.41 million	1.99

Nextera Energy Partners’ rivals have higher revenue and earnings than Nextera Energy Partners. Nextera Energy Partners is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

66.0% of Nextera Energy Partners shares are held by institutional investors. Comparatively, 61.5% of shares of all “Electric services” companies are held by institutional investors. 0.1% of Nextera Energy Partners shares are held by company insiders. Comparatively, 6.8% of shares of all “Electric services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Nextera Energy Partners has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Nextera Energy Partners’ rivals have a beta of -0.92, meaning that their average stock price is 192% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextera Energy Partners	-0.73%	1.34%	0.85%
Nextera Energy Partners Competitors	3.47%	7.40%	1.45%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nextera Energy Partners and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextera Energy Partners	2	0	0	0	1.00
Nextera Energy Partners Competitors	1123	4865	4697	96	2.35

Nextera Energy Partners currently has a consensus price target of $10.00, suggesting a potential downside of 4.90%. As a group, “Electric services” companies have a potential upside of 6.33%. Given Nextera Energy Partners’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Nextera Energy Partners has less favorable growth aspects than its rivals.

Summary

Nextera Energy Partners rivals beat Nextera Energy Partners on 11 of the 15 factors compared.

About Nextera Energy Partners

NextEra Energy Partners LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.