Contrasting The AES Corporation (AES) & NV Energy (NVE)
The AES Corporation (NYSE: AES) and NV Energy (NYSE:NVE) are both electric utilities – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares The AES Corporation and NV Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|The AES Corporation||$13.59 billion||0.51||-$1.13 billion||($0.03)||-349.67|
NV Energy has higher revenue, but lower earnings than The AES Corporation.
Insider & Institutional Ownership
93.2% of The AES Corporation shares are owned by institutional investors. 1.1% of The AES Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares The AES Corporation and NV Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|The AES Corporation||-5.43%||15.14%||2.47%|
This is a summary of recent ratings and price targets for The AES Corporation and NV Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|The AES Corporation||0||4||1||0||2.20|
The AES Corporation presently has a consensus price target of $12.83, suggesting a potential upside of 22.34%.
The AES Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 4.6%. NV Energy does not pay a dividend. The AES Corporation pays out -1,600.0% of its earnings in the form of a dividend. The AES Corporation has raised its dividend for 4 consecutive years.
The AES Corporation beats NV Energy on 9 of the 10 factors compared between the two stocks.
About The AES Corporation
The AES Corporation is a holding company. The Company, through its subsidiaries and affiliates, operates a diversified portfolio of electricity generation and distribution businesses. It is organized into six strategic business units (SBUs): the United States; Andes; Brazil; Mexico, Central America and the Caribbean (MCAC); Europe, and Asia. As of December 31, 2016, its United States SBU had 18 generation facilities and two integrated utilities in the United States. As of December 31, 2016, its Andes SBU had generation facilities in three countries. Its Brazil SBU has generation and distribution businesses, Eletropaulo and Tiete. As of December 31, 2016, its MCAC SBU had a portfolio of distribution businesses and generation facilities, including renewable energy, in five countries. As of December 31, 2016, its Europe SBU had generation facilities in five countries. As of December 31, 2016, its Asia SBU had generation facilities in three countries.
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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