NRG vs. AES, ORA, GNE, CEG, AEP, D, VST, EIX, DTE, and ETR
Should you be buying NRG Energy stock or one of its competitors? The main competitors of NRG Energy include AES (AES), Ormat Technologies (ORA), Genie Energy (GNE), Constellation Energy (CEG), American Electric Power (AEP), Dominion Energy (D), Vistra (VST), Edison International (EIX), DTE Energy (DTE), and Entergy (ETR).
AES (NYSE:AES) and NRG Energy (NYSE:NRG) are both large-cap utilities companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, community ranking, media sentiment, analyst recommendations, risk, dividends and valuation.
93.1% of AES shares are held by institutional investors. Comparatively, 97.7% of NRG Energy shares are held by institutional investors. 0.6% of AES shares are held by insiders. Comparatively, 0.9% of NRG Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
AES presently has a consensus target price of $22.50, suggesting a potential upside of 4.21%. NRG Energy has a consensus target price of $68.00, suggesting a potential downside of 16.05%. Given NRG Energy's stronger consensus rating and higher probable upside, equities analysts clearly believe AES is more favorable than NRG Energy.
NRG Energy received 293 more outperform votes than AES when rated by MarketBeat users. Likewise, 66.02% of users gave NRG Energy an outperform vote while only 61.60% of users gave AES an outperform vote.
NRG Energy has a net margin of 5.76% compared to NRG Energy's net margin of 4.40%. AES's return on equity of 42.60% beat NRG Energy's return on equity.
AES has higher earnings, but lower revenue than NRG Energy. NRG Energy is trading at a lower price-to-earnings ratio than AES, indicating that it is currently the more affordable of the two stocks.
AES has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, NRG Energy has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
AES pays an annual dividend of $0.69 per share and has a dividend yield of 3.2%. NRG Energy pays an annual dividend of $1.63 per share and has a dividend yield of 2.0%. AES pays out 95.8% 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 pays out 23.1% of its earnings in the form of a dividend. AES has increased its dividend for 11 consecutive years and NRG Energy has increased its dividend for 5 consecutive years. AES is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, AES had 11 more articles in the media than NRG Energy. MarketBeat recorded 24 mentions for AES and 13 mentions for NRG Energy. AES's average media sentiment score of 0.79 beat NRG Energy's score of 0.28 indicating that NRG Energy is being referred to more favorably in the news media.
Summary
NRG Energy beats AES on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding NRG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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