Contrasting Nextera Energy Partners (NYSE:NEP) and Portland General Electric (NYSE:POR)

Portland General Electric (NYSE:PORGet Free Report) and Nextera Energy Partners (NYSE:NEPGet Free Report) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Dividends

Portland General Electric pays an annual dividend of $2.00 per share and has a dividend yield of 4.8%. Nextera Energy Partners pays an annual dividend of $3.67 per share. Portland General Electric pays out 59.7% of its earnings in the form of a dividend. Nextera Energy Partners pays out -3,670.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Portland General Electric and Nextera Energy Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Portland General Electric 1 4 3 0 2.25
Nextera Energy Partners 2 0 0 0 1.00

Portland General Electric presently has a consensus price target of $47.38, indicating a potential upside of 13.00%. Nextera Energy Partners has a consensus price target of $10.00, indicating a potential upside of 0.00%. Given Portland General Electric’s stronger consensus rating and higher probable upside, research analysts clearly believe Portland General Electric is more favorable than Nextera Energy Partners.

Volatility & Risk

Portland General Electric has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Nextera Energy Partners has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

66.0% of Nextera Energy Partners shares are held by institutional investors. 0.5% of Portland General Electric shares are held by company insiders. Comparatively, 0.1% of Nextera Energy Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Portland General Electric 10.30% 10.28% 3.09%
Nextera Energy Partners -0.73% 1.34% 0.85%

Valuation & Earnings

This table compares Portland General Electric and Nextera Energy Partners”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Portland General Electric $2.92 billion 1.51 $228.00 million $3.35 12.51
Nextera Energy Partners $1.23 billion 0.00 -$10.00 million ($0.10) N/A

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

Summary

Portland General Electric beats Nextera Energy Partners on 12 of the 15 factors compared between the two stocks.

About Portland General Electric

(Get Free Report)

Portland General Electric Company, an integrated electric utility company, engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. It operates six thermal plants, three wind farms, and seven hydroelectric facilities. As of December 31, 2023, the company owned an electric transmission system consisting of 1,254 circuit miles, including 287 circuit miles of 500 kilovolt line, 413 circuit miles of 230 kilovolt line, and 554 miles of 115 kilovolt line; and served 934 thousand retail customers in 51 cities. It also has 28,868 circuit miles of distribution lines. Portland General Electric Company was founded in 1889 and is headquartered in Portland, Oregon.

About Nextera Energy Partners

(Get Free Report)

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.

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