NRG Energy (NYSE:NRG – Get Free Report) and United Utilities Group (OTCMKTS:UUGRY – Get Free Report) are both large-cap utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Insider & Institutional Ownership
97.7% of NRG Energy shares are held by institutional investors. 0.4% of NRG Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for NRG Energy and United Utilities Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NRG Energy | 0 | 4 | 10 | 1 | 2.80 |
| United Utilities Group | 0 | 4 | 3 | 1 | 2.62 |
Earnings & Valuation
This table compares NRG Energy and United Utilities Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NRG Energy | $30.71 billion | 0.98 | $864.00 million | $0.85 | 168.36 |
| United Utilities Group | $3.51 billion | 3.84 | $786.53 million | N/A | N/A |
NRG Energy has higher revenue and earnings than United Utilities Group.
Profitability
This table compares NRG Energy and United Utilities Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NRG Energy | 0.74% | 70.67% | 4.95% |
| United Utilities Group | N/A | N/A | N/A |
Risk and Volatility
NRG Energy has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, United Utilities Group has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Dividends
NRG Energy pays an annual dividend of $1.90 per share and has a dividend yield of 1.3%. United Utilities Group pays an annual dividend of $1.76 per share and has a dividend yield of 4.9%. NRG Energy pays out 223.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NRG Energy has raised its dividend for 1 consecutive years.
Summary
NRG Energy beats United Utilities Group on 12 of the 15 factors compared between the two stocks.
About NRG Energy
NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.
About United Utilities Group
United Utilities Group PLC provides water and wastewater services in the United Kingdom. It is involved in the renewable energy generation, corporate trustee, financing, and property management activities; and provision of consulting, and project management services. The company operates 43,000 kilometers of water pipes; and 79,000 kilometers of wastewater pipes. United Utilities Group PLC was incorporated in 2008 and is based in Warrington, the United Kingdom.
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