Innergex Renewable Energy (OTCMKTS:INGXF) and Eversource Energy (NYSE:ES) Head-To-Head Analysis

Eversource Energy (NYSE:ES) and Innergex Renewable Energy (OTCMKTS:INGXF) are both utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

80.0% of Eversource Energy shares are held by institutional investors. 0.2% of Eversource Energy shares are held by insiders. Comparatively, 4.7% of Innergex Renewable Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.2%. Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Eversource Energy pays out 67.3% of its earnings in the form of a dividend. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy has increased its dividend for 2 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Eversource Energy and Innergex Renewable Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$13.55 billion	2.08	$1.69 billion	$4.68	16.02
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18

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

Volatility and Risk

Eversource Energy has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Innergex Renewable Energy has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Eversource Energy and Innergex Renewable Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	3	5	4	0	2.08
Innergex Renewable Energy	0	0	0	0	0.00

Eversource Energy presently has a consensus price target of $71.82, indicating a potential downside of 4.20%. Given Eversource Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Eversource Energy is more favorable than Innergex Renewable Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	12.55%	11.59%	2.97%
Innergex Renewable Energy	5.51%	5.30%	0.76%

Summary

Eversource Energy beats Innergex Renewable Energy on 14 of the 17 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 Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.