Xcel Energy (NYSE: XEL) and NV Energy (NYSE:NVE) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Institutional & Insider Ownership

73.1% of Xcel Energy shares are held by institutional investors. 0.2% of Xcel Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Xcel Energy pays an annual dividend of $1.44 per share and has a dividend yield of 2.9%. NV Energy does not pay a dividend. Xcel Energy pays out 63.4% of its earnings in the form of a dividend. NV Energy has increased its dividend for 13 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Xcel Energy 10.08% 10.42% 2.80%
NV Energy N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Xcel Energy and NV Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcel Energy 0 8 1 0 2.11
NV Energy 0 0 0 0 N/A

Xcel Energy presently has a consensus target price of $46.89, suggesting a potential downside of 4.49%. Given Xcel Energy’s higher probable upside, equities analysts clearly believe Xcel Energy is more favorable than NV Energy.

Earnings & Valuation

This table compares Xcel Energy and NV Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Xcel Energy $11.43 billion 2.18 $3.76 billion $2.27 21.63
NV Energy N/A N/A N/A N/A N/A

Xcel Energy has higher revenue and earnings than NV Energy.

Summary

Xcel Energy beats NV Energy on 9 of the 11 factors compared between the two stocks.

About Xcel Energy

Xcel Energy Inc. is a public utility holding company. The Company’s operations include the activity of four utility subsidiaries that serve electric and natural gas customers in eight states. The Company’s segments include regulated electric utility, regulated natural gas utility and all other. The Company’s utility subsidiaries include NSP-Minnesota, NSP-Wisconsin, Public Service Company of Colorado (PSCo) and Southwestern Public Service Co. (SPS), which serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Along with WYCO Development LLC (WYCO), a joint venture formed with Colorado Interstate Gas Company, LLC (CIG) to develop and lease natural gas pipelines storage and compression facilities, and WestGas InterState, Inc. (WGI), an interstate natural gas pipeline company, these companies comprise the regulated utility operations.

About NV Energy

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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