Public Service Enterprise Group (NYSE: PEG) and NV Energy (NYSE:NVE) are both utilities companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Public Service Enterprise Group pays an annual dividend of $1.72 per share and has a dividend yield of 3.4%. NV Energy does not pay a dividend. Public Service Enterprise Group pays out 168.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Public Service Enterprise Group has raised its dividend for 6 consecutive years.
This table compares Public Service Enterprise Group and NV Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Public Service Enterprise Group||$9.06 billion||2.79||$887.00 million||$1.02||49.02|
Public Service Enterprise Group has higher revenue and earnings than NV Energy.
This table compares Public Service Enterprise Group and NV Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Public Service Enterprise Group||5.73%||11.33%||3.66%|
This is a breakdown of recent ratings and price targets for Public Service Enterprise Group and NV Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Public Service Enterprise Group||0||5||10||0||2.67|
Public Service Enterprise Group currently has a consensus target price of $51.29, indicating a potential upside of 2.58%.
Insider and Institutional Ownership
66.7% of Public Service Enterprise Group shares are held by institutional investors. 0.6% of Public Service Enterprise Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Public Service Enterprise Group beats NV Energy on 9 of the 10 factors compared between the two stocks.
About Public Service Enterprise Group
Public Service Enterprise Group Incorporated (PSEG) is a holding company. The Company is an energy company with operations located primarily in the Northeastern and Mid-Atlantic United States. The Company’s segments include Public Service Electric and Gas Company (PSE&G), PSEG Power LLC (Power) and Other. PSEG is engaged in the transmission of electricity and distribution of electricity and natural gas in certain areas of New Jersey. PSE&G is also the provider of last resort for gas and electric commodity service for end users in its service territory. Power is a multi-regional energy supply company that integrates the operations of its merchant nuclear and fossil generating assets with its power marketing businesses through energy sales in energy markets and fuel supply functions primarily in the Northeast and Mid-Atlantic United States through its principal subsidiaries. In addition, Power owns and operates solar generation in various states.
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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