Comparing Eversource Energy (NYSE:ES) & Evergy (NASDAQ:EVRG)

Eversource Energy (NYSE:ES) and Evergy (NASDAQ:EVRG) are both large-cap utilities companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Dividends

Eversource Energy pays an annual dividend of $3.01 per share and has a dividend yield of 4.1%. Evergy pays an annual dividend of $2.67 per share and has a dividend yield of 3.5%. Eversource Energy pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy pays out 73.4% of its earnings in the form of a dividend. Eversource Energy has raised its dividend for 2 consecutive years and Evergy has raised its dividend for 20 consecutive years.

Risk and Volatility

Eversource Energy has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Eversource Energy and Evergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	3	6	4	0	2.08
Evergy	0	1	9	1	3.00

Eversource Energy presently has a consensus price target of $72.70, suggesting a potential downside of 0.51%. Evergy has a consensus price target of $79.61, suggesting a potential upside of 5.32%. Given Evergy’s stronger consensus rating and higher probable upside, analysts clearly believe Evergy is more favorable than Eversource Energy.

Earnings & Valuation

This table compares Eversource Energy and Evergy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$11.90 billion	2.28	$811.65 million	$3.65	20.02
Evergy	$5.88 billion	2.96	$873.50 million	$3.64	20.77

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

Profitability

This table compares Eversource Energy and Evergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	10.22%	11.19%	2.85%
Evergy	14.29%	8.62%	2.66%

Institutional & Insider Ownership

80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.4% of Eversource Energy shares are owned by insiders. Comparatively, 1.4% of Evergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Evergy beats Eversource Energy on 12 of the 18 factors compared between the two stocks.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.