NRG Yield (NYSE: NYLD) is one of 85 public companies in the “Electric Utilities” industry, but how does it weigh in compared to its peers? We will compare NRG Yield to similar companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Institutional and Insider Ownership

28.3% of NRG Yield shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 0.2% of NRG Yield shares are held by company insiders. Comparatively, 2.9% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

NRG Yield has a beta of 2.57, meaning that its share price is 157% more volatile than the S&P 500. Comparatively, NRG Yield’s peers have a beta of 0.70, meaning that their average share price is 30% less volatile than the S&P 500.

Profitability

This table compares NRG Yield and its peers’ 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%
NRG Yield Competitors -10.82% 3.51% 0.54%

Earnings and Valuation

This table compares NRG Yield and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NRG Yield $1.01 billion $753.00 million 42.22
NRG Yield Competitors $7.19 billion $2.12 billion 30.58

NRG Yield’s peers have higher revenue and earnings than NRG Yield. NRG Yield is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for NRG Yield and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Yield 0 5 4 0 2.44
NRG Yield Competitors 504 2860 2307 40 2.33

NRG Yield presently has a consensus target price of $20.00, suggesting a potential upside of 5.26%. As a group, “Electric Utilities” companies have a potential upside of 6.30%. Given NRG Yield’s peers higher possible upside, analysts clearly believe NRG Yield has less favorable growth aspects than its peers.

Dividends

NRG Yield pays an annual dividend of $1.12 per share and has a dividend yield of 5.9%. 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. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 103.7% of their earnings in the form of a dividend.

Summary

NRG Yield peers beat NRG Yield on 9 of the 15 factors compared.

About NRG Yield

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.

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