NRG Yield, Inc. Class C (NYSE: NYLD) and Atlantica Yield (NASDAQ:AY) are both utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
NRG Yield, Inc. Class C pays an annual dividend of $1.19 per share and has a dividend yield of 6.7%. Atlantica Yield pays an annual dividend of $1.24 per share and has a dividend yield of 6.1%. NRG Yield, Inc. Class C pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Atlantica Yield pays out -688.9% of its earnings in the form of a dividend.
29.1% of NRG Yield, Inc. Class C shares are owned by institutional investors. Comparatively, 53.6% of Atlantica Yield shares are owned by institutional investors. 0.2% of NRG Yield, Inc. Class C shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares NRG Yield, Inc. Class C and Atlantica Yield’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NRG Yield, Inc. Class C||$1.01 billion||3.23||-$8.00 million||$0.81||21.79|
|Atlantica Yield||$1.01 billion||2.01||-$111.80 million||($0.18)||-112.50|
NRG Yield, Inc. Class C has higher revenue and earnings than Atlantica Yield. Atlantica Yield is trading at a lower price-to-earnings ratio than NRG Yield, Inc. Class C, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
NRG Yield, Inc. Class C has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, Atlantica Yield has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
This table compares NRG Yield, Inc. Class C and Atlantica Yield’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NRG Yield, Inc. Class C||-1.59%||3.17%||0.85%|
This is a summary of recent recommendations for NRG Yield, Inc. Class C and Atlantica Yield, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NRG Yield, Inc. Class C||0||4||4||0||2.50|
NRG Yield, Inc. Class C presently has a consensus price target of $19.00, suggesting a potential upside of 7.65%. Atlantica Yield has a consensus price target of $25.67, suggesting a potential upside of 26.75%. Given Atlantica Yield’s stronger consensus rating and higher probable upside, analysts plainly believe Atlantica Yield is more favorable than NRG Yield, Inc. Class C.
NRG Yield, Inc. Class C beats Atlantica Yield on 12 of the 16 factors compared between the two stocks.
About NRG Yield, Inc. Class C
NRG Yield, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2017, it had contracted renewable and conventional generation portfolio of 5,118 net megawatt (MW). The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,319 net MW thermal equivalents, and electric generation capacity of 123 net MW. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. NRG Yield, Inc. is a subsidiary of NRG Energy, Inc.
About Atlantica Yield
Atlantica Yield plc acquires, owns, and manages renewable energy natural gas, power, electric transmission lines, and water assets in North America, South America, Spain, Algeria, and South Africa. As of December 31, 2017, it had 22 assets, including 1,446 megawatts (MW) of renewable energy generation assets comprising solar power and wind plants; 300 MW of natural gas power generation assets that produce electricity and steam from natural gas; 1,099 miles of electric transmission lines; and desalination plants with an aggregate capacity of 10.5 million cubic feet per day. The company was formerly known as Abengoa Yield plc and changed its name to Atlantica Yield plc in May 2016. Atlantica Yield plc was incorporated in 2013 and is based in Brentford, the United Kingdom.
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