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

Dividends

NRG Yield pays an annual dividend of $1.12 per share and has a dividend yield of 6.0%. NRG Yield pays out 266.7% 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 3.1% and pay out 105.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for NRG Yield and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Yield 0 6 4 0 2.40
NRG Yield Competitors 529 2937 2359 41 2.33

NRG Yield presently has a consensus target price of $19.57, indicating a potential upside of 5.22%. As a group, “Electric Utilities” companies have a potential upside of 3.71%. Given NRG Yield’s stronger consensus rating and higher probable upside, equities research analysts clearly believe NRG Yield is more favorable than its rivals.

Insider and Institutional Ownership

28.4% of NRG Yield shares are owned by institutional investors. Comparatively, 65.6% of shares of all “Electric Utilities” companies are owned by institutional investors. 0.2% of NRG Yield shares are owned by insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares NRG Yield and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
NRG Yield $1.02 billion $67.00 million 44.29
NRG Yield Competitors $7.66 billion $831.80 million 18.56

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

Risk and Volatility

NRG Yield has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, NRG Yield’s rivals 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 rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRG Yield 4.10% 1.75% 0.48%
NRG Yield Competitors -10.72% 0.91% 0.38%

Summary

NRG Yield beats its rivals on 8 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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