NRG Energy (NYSE:NRG) vs. AES Tietê Energia (OTCMKTS:AESTY) Critical Comparison

AES Tietê Energia (OTCMKTS:AESTY) and NRG Energy (NYSE:NRG) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for AES Tietê Energia and NRG Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AES Tietê Energia	0	0	0	0	0.00
NRG Energy	0	4	10	1	2.80

NRG Energy has a consensus price target of $198.43, indicating a potential upside of 74.34%. Given NRG Energy’s stronger consensus rating and higher possible upside, analysts clearly believe NRG Energy is more favorable than AES Tietê Energia.

Institutional & Insider Ownership

97.7% of NRG Energy shares are owned by institutional investors. 0.4% of NRG Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AES Tietê Energia and NRG Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AES Tietê Energia	N/A	N/A	N/A	N/A	N/A
NRG Energy	$30.71 billion	0.78	$864.00 million	$3.78	30.11

NRG Energy has higher revenue and earnings than AES Tietê Energia.

Profitability

This table compares AES Tietê Energia and NRG Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AES Tietê Energia	N/A	N/A	N/A
NRG Energy	2.56%	52.95%	4.29%

Summary

NRG Energy beats AES Tietê Energia on 10 of the 10 factors compared between the two stocks.

About AES Tietê Energia

AES Tietê Energia S.A., together with its subsidiaries, engages in the renewable energy generation business in Brazil. It generates electricity through hydroelectric, wind, and solar sources. The company operates 9 hydroelectric power plants and 3 small hydroelectric power plants with an installed capacity of 2,658 megawatts. It also operates wind and solar energy production units, including the Alto Sertão II wind complex with an installed capacity of 386 megawatts; and Guaimbê Solar Complex and Ouroeste Solar Complex with an installed capacity of 299 megawatts located in the state of São Paulo. The company was formerly known as Companhia Brasiliana de Energia and changed its name to AES Tietê Energia S.A. in December 2015. The company was founded in 1999 and is headquartered in São Paulo, Brazil. AES Tietê Energia S.A. is a subsidiary of AES Holdings Brasil Ltda.

About NRG Energy

NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.