Financial Survey: Evergy (EVRG) versus Xcel Energy (XEL)

Xcel Energy (NYSE: XEL) and Evergy (NASDAQ:EVRG) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Xcel Energy pays an annual dividend of $1.52 per share and has a dividend yield of 3.3%. Evergy pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Xcel Energy has raised its dividend for 14 consecutive years. Xcel Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

74.0% of Xcel Energy shares are held by institutional investors. 0.2% of Xcel Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Xcel Energy and Evergy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xcel Energy 10.06% 10.44% 2.80%
Evergy N/A N/A N/A

Valuation and Earnings

This table compares Xcel Energy and Evergy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xcel Energy $11.40 billion 2.04 $1.15 billion N/A N/A
Evergy N/A N/A N/A N/A N/A

Xcel Energy has higher revenue and earnings than Evergy.

Analyst Ratings

This is a summary of recent ratings and target prices for Xcel Energy and Evergy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xcel Energy 0 6 4 0 2.40
Evergy 0 2 2 0 2.50

Xcel Energy presently has a consensus price target of $47.70, indicating a potential upside of 4.56%. Evergy has a consensus price target of $58.67, indicating a potential upside of 5.61%. Given Evergy’s stronger consensus rating and higher possible upside, analysts clearly believe Evergy is more favorable than Xcel Energy.

Summary

Xcel Energy beats Evergy on 9 of the 11 factors compared between the two stocks.

Xcel Energy Company Profile

Xcel Energy Inc. is a public utility holding company. The Company’s operations include the activity of four utility subsidiaries that serve electric and natural gas customers in eight states. The Company’s segments include regulated electric utility, regulated natural gas utility and all other. The Company’s utility subsidiaries include NSP-Minnesota, NSP-Wisconsin, Public Service Company of Colorado (PSCo) and Southwestern Public Service Co. (SPS), which serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Along with WYCO Development LLC (WYCO), a joint venture formed with Colorado Interstate Gas Company, LLC (CIG) to develop and lease natural gas pipelines storage and compression facilities, and WestGas InterState, Inc. (WGI), an interstate natural gas pipeline company, these companies comprise the regulated utility operations.

Evergy Company Profile

Westar Energy, Inc. engages in the generation, transmission and distribution of electricity in Kansas. It provides electricity to residential, commercial, and industrial customers in the cities of Topeka, Lawrence, Manhattan, Salina, and Hutchinson. The company was founded in 1924 and is headquartered in Topeka, KS.

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