Cleco Corporate Holdings (NYSE: CNL) and NRG Yield (NYSE:NYLD) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.
NRG Yield pays an annual dividend of $1.12 per share and has a dividend yield of 5.9%. Cleco Corporate Holdings does not pay a dividend. NRG Yield pays out 248.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cleco Corporate Holdings has increased its dividend for 7 consecutive years.
Valuation & Earnings
This table compares Cleco Corporate Holdings and NRG Yield’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cleco Corporate Holdings||N/A||N/A||N/A||N/A||N/A|
|NRG Yield||$1.01 billion||1.19||$753.00 million||$0.45||42.00|
NRG Yield has higher revenue and earnings than Cleco Corporate Holdings.
This is a breakdown of current recommendations and price targets for Cleco Corporate Holdings and NRG Yield, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cleco Corporate Holdings||0||0||0||0||N/A|
NRG Yield has a consensus target price of $20.00, suggesting a potential upside of 5.82%. Given NRG Yield’s higher probable upside, analysts clearly believe NRG Yield is more favorable than Cleco Corporate Holdings.
This table compares Cleco Corporate Holdings and NRG Yield’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cleco Corporate Holdings||8.24%||5.05%||1.60%|
Insider & Institutional Ownership
28.3% of NRG Yield shares are owned by institutional investors. 0.2% of NRG Yield shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
NRG Yield beats Cleco Corporate Holdings on 6 of the 11 factors compared between the two stocks.
Cleco Corporate Holdings Company Profile
Cleco Corporate Holdings LLC, formerly Cleco Corporation, is a public utility holding company. The Company’s segments include Cleco Power and Other. Cleco Power is a regulated electric utility company that owns over 10 generating units with a total nameplate capacity of approximately 3,330 megawatts (MW) and serves approximately 287,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. The Company, through its subsidiaries, owns one transmission substation in Louisiana and one transmission substation in Mississippi. Cleco Power is engaged in the generation, transmission, distribution and sale of electricity within Louisiana. It owns natural gas pipelines and interconnections at all of its generating facilities, which allow it to access various natural gas supply markets and maintain an economical fuel supply for its customers. The Company holds investments in its subsidiary, Cleco Power LLC (Cleco Power).
NRG Yield Company Profile
NRG Yield, Inc. serves as the primary vehicle, through which NRG Energy, Inc. owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. It owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. Its contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In July 2014, NRG Yield Inc completed its acquisition of three Right of First Offer (ROFO) assets from NRG Energy, Inc. In August 2014, it acquired Alta Wind facility located in Tehachapi, California from Terra-Gen Power LLC.
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