NRG Yield (NYSE: NYLD) and NV Energy (NYSE:NVE) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitabiliy, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation & Earnings

This table compares NRG Yield and NV Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NRG Yield $1.01 billion 1.15 $755.00 million $0.48 38.13
NV Energy N/A N/A N/A N/A N/A

NRG Yield has higher revenue and earnings than NV Energy.

Profitability

This table compares NRG Yield and NV Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRG Yield 5.00% 2.01% 0.59%
NV Energy N/A N/A N/A

Institutional and Insider Ownership

32.3% of NRG Yield shares are held by institutional investors. 0.2% of NRG Yield shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

NRG Yield pays an annual dividend of $1.08 per share and has a dividend yield of 5.9%. NV Energy does not pay a dividend. NRG Yield pays out 225.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NRG Yield and NV Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Yield 0 5 4 0 2.44
NV Energy 0 0 0 0 N/A

NRG Yield currently has a consensus price target of $20.00, suggesting a potential upside of 9.29%. Given NRG Yield’s higher possible upside, research analysts plainly believe NRG Yield is more favorable than NV Energy.

Summary

NRG Yield beats NV Energy on 9 of the 10 factors compared between the two stocks.

NRG Yield Company Profile

NRG Yield, Inc. serves as the primary vehicle, through which NRG Energy, Inc. owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. It owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. Its contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In July 2014, NRG Yield Inc completed its acquisition of three Right of First Offer (ROFO) assets from NRG Energy, Inc. In August 2014, it acquired Alta Wind facility located in Tehachapi, California from Terra-Gen Power LLC.

NV Energy Company Profile

NV Energy, Inc. (NVE) is an investor-owned holding company. NVE has four primary, wholly owned subsidiaries: Nevada Power Company (NPC), doing business as NV Energy, Sierra Pacific Power Company (SPPC) doing business as NV Energy, NVE Insurance Company, Inc. and Lands of Sierra. The NPC and SPPC (Utilities) operate three business segments: NPC electric; SPPC electric, and SPPC natural gas. Electric service is provided by NPC to Las Vegas and surrounding Clark County, and by SPPC to northern Nevada. Natural gas service is provided by SPPC in the Reno-Sparks area of Nevada. Nevada Electrical Investment Company (NEICO) is a wholly owned subsidiary of NPC. On December 19, 2013, MidAmerican Energy Holdings Company (MidAmerican) completed the merger of NV Energy, Inc. (NVE) and Silver Merger Sub, Inc., a subsidiary of MidAmerican, and following the completion of the merger (the NVE Merger) NVE became an indirect wholly owned subsidiary of MidAmerican.

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