NRG Yield (NYSE: NYLD) and Atlantic Power Corporation (NYSE:AT) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Insider & Institutional Ownership

28.3% of NRG Yield shares are owned by institutional investors. Comparatively, 45.8% of Atlantic Power Corporation shares are owned by institutional investors. 0.2% of NRG Yield shares are owned by company insiders. Comparatively, 1.6% of Atlantic Power Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

NRG Yield pays an annual dividend of $1.12 per share and has a dividend yield of 6.0%. Atlantic Power Corporation does not pay a dividend. NRG Yield pays out 248.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares NRG Yield and Atlantic Power Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NRG Yield $1.01 billion 1.19 $753.00 million $0.45 41.78
Atlantic Power Corporation $417.00 million 0.69 $179.50 million ($0.96) -2.60

NRG Yield has higher revenue and earnings than Atlantic Power Corporation. Atlantic Power Corporation is trading at a lower price-to-earnings ratio than NRG Yield, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

NRG Yield has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, Atlantic Power Corporation has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NRG Yield and Atlantic Power Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Yield 0 4 4 0 2.50
Atlantic Power Corporation 0 3 0 0 2.00

NRG Yield presently has a consensus price target of $20.00, indicating a potential upside of 6.38%. Atlantic Power Corporation has a consensus price target of $2.60, indicating a potential upside of 4.00%. Given NRG Yield’s stronger consensus rating and higher possible upside, analysts clearly believe NRG Yield is more favorable than Atlantic Power Corporation.

Profitability

This table compares NRG Yield and Atlantic Power Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRG Yield 4.47% 1.89% 0.53%
Atlantic Power Corporation -25.71% 27.03% 1.21%

Summary

NRG Yield beats Atlantic Power Corporation on 11 of the 16 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.

Atlantic Power Corporation Company Profile

Atlantic Power Corporation (Atlantic Power) owns and operates a fleet of power generation assets in the United States and Canada. The Company’s power generation projects sell electricity to utilities and other commercial customers. Atlantic Power’s segments include East U.S., West U.S. and Canada. The Company’s East U.S. segment comprises natural gas, biomass, coal and hydro projects. The Company’s projects under the West U.S. segment include Naval Station, Naval Training Center, North Island, Oxnard, Manchief and Frederickson, which are focused on natural gas, and Koma Kulshan, which is focused on hydro. Under the Canada segment, the Company’s projects located in British Columbia include Mamquam, Mamquam and Williams Lake. Its Calstock and Tunis projects are located in Ontario. The Company’s portfolio consisted of interests in 19 operational power generation projects across nine states in the United States and two provinces in Canada, as of December 31, 2016.

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