Head-To-Head Contrast: Vivint Solar (VSLR) & NextEra Energy (NEE)
Vivint Solar (NYSE: VSLR) and NextEra Energy (NYSE:NEE) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitabiliy, institutional ownership, dividends and earnings.
This table compares Vivint Solar and NextEra Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Vivint Solar and NextEra Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vivint Solar||$171.05 million||3.26||-$84.91 million||$0.55||9.18|
|NextEra Energy||$16.29 billion||4.05||$7.80 billion||$8.21||17.17|
NextEra Energy has higher revenue and earnings than Vivint Solar. Vivint Solar is trading at a lower price-to-earnings ratio than NextEra Energy, indicating that it is currently the more affordable of the two stocks.
NextEra Energy pays an annual dividend of $3.93 per share and has a dividend yield of 2.8%. Vivint Solar does not pay a dividend. NextEra Energy pays out 47.9% of its earnings in the form of a dividend. Vivint Solar has increased its dividend for 7 consecutive years.
Volatility & Risk
Vivint Solar has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, NextEra Energy has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.
Institutional & Insider Ownership
93.8% of Vivint Solar shares are held by institutional investors. Comparatively, 76.8% of NextEra Energy shares are held by institutional investors. 4.5% of Vivint Solar shares are held by company insiders. Comparatively, 0.5% 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 stock will outperform the market over the long term.
This is a summary of current ratings for Vivint Solar and NextEra Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vivint Solar presently has a consensus target price of $5.67, suggesting a potential upside of 12.21%. NextEra Energy has a consensus target price of $149.38, suggesting a potential upside of 5.96%. Given Vivint Solar’s higher possible upside, analysts clearly believe Vivint Solar is more favorable than NextEra Energy.
NextEra Energy beats Vivint Solar on 11 of the 17 factors compared between the two stocks.
About Vivint Solar
Vivint Solar, Inc. offers distributed solar energy, electricity generated by a solar energy system installed at or near customers’ locations, to residential customers. Through investment funds, the Company owns solar energy systems it installs and provides solar electricity pursuant to long-term contracts with its customers. The Company also sells solar energy systems outright to customers. The Company deploys its direct-to-home sales force to provide in-person professional consultations to prospective customers to evaluate the feasibility of installing a solar energy system at their residence. The Company’s systems use communication gateways and monitoring services to collect performance data. The Company operates in Arizona, California, Connecticut, Florida, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, Texas and Utah. The Company purchases solar panels directly from multiple manufacturers.
About NextEra Energy
NextEra Energy, Inc. (NEE) is a holding company. The Company is an electric power companies in North America and, through its subsidiary NextEra Energy Resources, LLC (NEER) and its affiliated entities, is the generator of renewable energy from the wind and sun. NEE also owns and/or operates generation, transmission and distribution facilities to support its services to retail and wholesale customers, and has investments in gas infrastructure assets. Its segments include FPL and NEER. Florida Power & Light Company (FPL) is a rate-regulated electric utility engaged primarily in the generation, transmission, distribution and sale of electric energy in Florida. NEER is a diversified clean energy company with a business strategy that emphasizes the development, acquisition and operation of long-term contracted assets with a focus on renewable projects. NEER owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets.
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