NextEra Energy Partners (NYSE:NEP) & Enel Américas (NYSE:ENIA) Critical Contrast

NextEra Energy Partners (NYSE:NEP) and Enel Américas (NYSE:ENIA) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares NextEra Energy Partners and Enel Américas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextEra Energy Partners 26.18% 3.22% 1.95%
Enel Américas 6.75% 8.86% 3.44%

Analyst Recommendations

This is a breakdown of current recommendations for NextEra Energy Partners and Enel Américas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextEra Energy Partners 1 3 9 0 2.62
Enel Américas 0 0 0 0 N/A

NextEra Energy Partners currently has a consensus target price of $80.23, suggesting a potential upside of 2.46%. Given NextEra Energy Partners’ higher probable upside, research analysts clearly believe NextEra Energy Partners is more favorable than Enel Américas.

Institutional and Insider Ownership

83.8% of NextEra Energy Partners shares are held by institutional investors. Comparatively, 2.8% of Enel Américas shares are held by institutional investors. 0.2% of NextEra Energy Partners shares are held by insiders. Comparatively, 0.0% of Enel Américas shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

NextEra Energy Partners has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Enel Américas has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Earnings & Valuation

This table compares NextEra Energy Partners and Enel Américas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NextEra Energy Partners $917.00 million 6.54 -$50.00 million ($0.81) -96.67
Enel Américas $12.19 billion 0.79 $825.20 million N/A N/A

Enel Américas has higher revenue and earnings than NextEra Energy Partners.

Dividends

NextEra Energy Partners pays an annual dividend of $2.65 per share and has a dividend yield of 3.4%. Enel Américas pays an annual dividend of $0.27 per share and has a dividend yield of 4.3%. NextEra Energy Partners pays out -327.2% of its earnings in the form of a dividend. NextEra Energy Partners has raised its dividend for 6 consecutive years and Enel Américas has raised its dividend for 1 consecutive years.

Summary

NextEra Energy Partners beats Enel Américas on 9 of the 15 factors compared between the two stocks.

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, as well as natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.

About Enel Américas

Enel Américas SA engages in the exploitation, distribution and transformation of energy. It operates through the following segments: Generation & Transmission and Distribution. The Generation & Transmission segment consists of companies that own generation plants. The Distribution segment includes electricity supply to the final customers. The company was founded on June 19, 1981 and is headquartered in Santiago, Chile.

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