Critical Survey: Evergy (NASDAQ:EVRG) vs. Summer Energy (OTCMKTS:SUME)

Summer Energy (OTCMKTS:SUME) and Evergy (NASDAQ:EVRG) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

87.2% of Evergy shares are owned by institutional investors. 56.8% of Summer Energy shares are owned by company insiders. Comparatively, 1.4% of Evergy shares are owned 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.

Volatility and Risk

Summer Energy has a beta of -172.59, suggesting that its stock price is 17,359% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Valuation and Earnings

This table compares Summer Energy and Evergy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summer Energy	N/A	N/A	N/A	N/A	N/A
Evergy	$5.96 billion	3.22	$855.60 million	$3.67	22.71

Evergy has higher revenue and earnings than Summer Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Summer Energy	N/A	N/A	N/A
Evergy	14.35%	8.79%	2.68%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Summer Energy and Evergy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summer Energy	0	0	0	0	0.00
Evergy	0	3	6	1	2.80

Evergy has a consensus target price of $86.88, indicating a potential upside of 4.22%. Given Evergy’s stronger consensus rating and higher probable upside, analysts clearly believe Evergy is more favorable than Summer Energy.

Summary

Evergy beats Summer Energy on 10 of the 11 factors compared between the two stocks.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.

About Evergy

Evergy, Inc., together with its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in the United States. The company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources. It serves residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.