NextEra Energy (NYSE: NEE) and Comp En De Mn Cemig ADS (NYSE:CIG) are both mid-cap utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares NextEra Energy and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NextEra Energy 23.58% 11.82% 3.35%
Comp En De Mn Cemig ADS N/A N/A N/A

Valuation & Earnings

This table compares NextEra Energy and Comp En De Mn Cemig ADS’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NextEra Energy $16.29 billion 4.16 $7.80 billion $8.21 17.62
Comp En De Mn Cemig ADS $6.01 billion 0.55 $1.29 billion N/A N/A

NextEra Energy has higher revenue and earnings than Comp En De Mn Cemig ADS.

Volatility and Risk

NextEra Energy has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Dividends

NextEra Energy pays an annual dividend of $3.93 per share and has a dividend yield of 2.7%. Comp En De Mn Cemig ADS pays an annual dividend of $0.17 per share and has a dividend yield of 6.4%. NextEra Energy pays out 47.9% of its earnings in the form of a dividend. NextEra Energy has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

76.8% of NextEra Energy shares are owned by institutional investors. Comparatively, 3.1% of Comp En De Mn Cemig ADS shares are owned by institutional investors. 0.5% of NextEra Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NextEra Energy and Comp En De Mn Cemig ADS, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextEra Energy 0 1 8 0 2.89
Comp En De Mn Cemig ADS 0 2 1 0 2.33

NextEra Energy presently has a consensus price target of $150.56, suggesting a potential upside of 4.08%. Comp En De Mn Cemig ADS has a consensus price target of $2.80, suggesting a potential upside of 5.66%. Given Comp En De Mn Cemig ADS’s higher possible upside, analysts clearly believe Comp En De Mn Cemig ADS is more favorable than NextEra Energy.

Summary

NextEra Energy beats Comp En De Mn Cemig ADS on 12 of the 16 factors compared between the two stocks.

NextEra Energy Company Profile

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.

Comp En De Mn Cemig ADS Company Profile

Companhia Energetica de Minas Gerais-CEMIG is a holding company that is engaged in the generation, transmission and distribution of electricity. The Company’s segments include Generation, Transmission, Distribution, Telecom, Gas and Other. The Company, through its interests in subsidiaries or jointly controlled entities, is engaged in the activities of the construction and operation of systems for sale of electricity, as well as various fields of energy and telecommunications, for the purpose of commercial operation. Its electric power transmission business consists of transporting power from the facilities where it is generated to points of consumption, distribution networks and Free Consumers. Its distribution operation consists of transfers of electricity from distribution substations to final consumers. It is also engaged in businesses, such as telecommunications, energy solutions consulting, and acquisition, transport and distribution of gas and its subproducts and derivatives.

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