NextEra Energy (NYSE: NEE) is one of 69 public companies in the “Electric services” industry, but how does it weigh in compared to its competitors? We will compare NextEra Energy to similar businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.
NextEra Energy pays an annual dividend of $4.44 per share and has a dividend yield of 2.7%. NextEra Energy pays out 66.3% of its earnings in the form of a dividend. As a group, “Electric services” companies pay a dividend yield of 3.8% and pay out 72.9% of their earnings in the form of a dividend. NextEra Energy has raised its dividend for 8 consecutive years.
Risk and Volatility
NextEra Energy has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, NextEra Energy’s competitors have a beta of 0.03, indicating that their average share price is 97% less volatile than the S&P 500.
Institutional and Insider Ownership
76.4% of NextEra Energy shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Electric services” companies are owned by institutional investors. 0.6% of NextEra Energy shares are owned by insiders. Comparatively, 3.5% of shares of all “Electric services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares NextEra Energy and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|NextEra Energy||$17.20 billion||$5.38 billion||24.36|
|NextEra Energy Competitors||$8.49 billion||$471.49 million||10.88|
NextEra Energy has higher revenue and earnings than its competitors. NextEra Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This table compares NextEra Energy and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NextEra Energy Competitors||-22.94%||4.45%||-0.40%|
This is a summary of current ratings for NextEra Energy and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NextEra Energy Competitors||432||2358||2033||58||2.35|
NextEra Energy currently has a consensus target price of $165.38, indicating a potential upside of 1.33%. As a group, “Electric services” companies have a potential upside of 8.95%. Given NextEra Energy’s competitors higher possible upside, analysts plainly believe NextEra Energy has less favorable growth aspects than its competitors.
NextEra Energy beats its competitors on 11 of the 15 factors compared.
NextEra Energy Company Profile
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of February 16, 2018, the company operated approximately 46,790 megawatts of net generating capacity. As of December 31, 2017, it served approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,000 circuit miles of transmission and distribution lines and approximately 620 substations. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. NextEra Energy, Inc. was founded in 1925 and is headquartered in Juno Beach, Florida.
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