ENGIE (OTCMKTS:ENGIY) & NextEra Energy (NYSE:NEE) Head-To-Head Contrast

ENGIE (OTCMKTS:ENGIY) and NextEra Energy (NYSE:NEE) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Volatility & Risk

ENGIE has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, NextEra Energy has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares ENGIE and NextEra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ENGIE	N/A	N/A	N/A
NextEra Energy	29.36%	12.25%	3.78%

Analyst Ratings

This is a summary of recent ratings and recommmendations for ENGIE and NextEra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ENGIE	0	3	4	2	2.89
NextEra Energy	0	4	16	1	2.86

NextEra Energy has a consensus price target of $99.20, suggesting a potential upside of 16.55%. Given NextEra Energy’s higher probable upside, analysts clearly believe NextEra Energy is more favorable than ENGIE.

Valuation and Earnings

This table compares ENGIE and NextEra Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ENGIE	$81.38 billion	0.97	$4.33 billion	N/A	N/A
NextEra Energy	$27.41 billion	6.47	$6.84 billion	$3.93	21.66

NextEra Energy has lower revenue, but higher earnings than ENGIE.

Insider & Institutional Ownership

78.7% of NextEra Energy shares are held by institutional investors. 0.2% of NextEra Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

ENGIE pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. NextEra Energy pays an annual dividend of $2.49 per share and has a dividend yield of 2.9%. NextEra Energy pays out 63.4% of its earnings in the form of a dividend. NextEra Energy has raised its dividend for 31 consecutive years. NextEra Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NextEra Energy beats ENGIE on 12 of the 16 factors compared between the two stocks.

About ENGIE

ENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce energy and related services. The FlexGen segment operates flexible thermal generation and electricity, pumping, and battery storage facilities; solutions for decarbonizing industry with low-carbon hydrogen; and financing, construction, and operation of desalination plants. The Retail segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The others segment sells energy to companies and offers energy management services and solutions. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.

About NextEra Energy

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear,natural gas, and other clean energy. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. The company had approximately 33,276 megawatts of net generating capacity; approximately 90,000 circuit miles of transmission and distribution lines; and 883 substations. It serves approximately 12 million people through approximately 5.9 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.