Analyzing NRG Energy (NRG) and The Competition

NRG Energy (NYSE:NRG) is one of 76 public companies in the “UTIL – ELEC PWR” industry, but how does it weigh in compared to its rivals? We will compare NRG Energy to similar businesses based on the strength of its earnings, institutional ownership, valuation, analyst recommendations, dividends, profitability and risk.

Dividends

NRG Energy pays an annual dividend of $1.90 per share and has a dividend yield of 1.3%. NRG Energy pays out 48.2% of its earnings in the form of a dividend. As a group, “UTIL – ELEC PWR” companies pay a dividend yield of 3.0% and pay out 64.0% of their earnings in the form of a dividend. NRG Energy has increased its dividend for 1 consecutive years.

Profitability

This table compares NRG Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NRG Energy	2.81%	109.48%	6.55%
NRG Energy Competitors	7.72%	9.90%	1.85%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NRG Energy and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NRG Energy	1	3	11	1	2.75
NRG Energy Competitors	1839	7469	6839	182	2.33

NRG Energy presently has a consensus price target of $198.43, suggesting a potential upside of 34.23%. As a group, “UTIL – ELEC PWR” companies have a potential upside of 7.36%. Given NRG Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe NRG Energy is more favorable than its rivals.

Institutional & Insider Ownership

97.7% of NRG Energy shares are held by institutional investors. Comparatively, 71.7% of shares of all “UTIL – ELEC PWR” companies are held by institutional investors. 0.9% of NRG Energy shares are held by insiders. Comparatively, 4.2% of shares of all “UTIL – ELEC PWR” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares NRG Energy and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NRG Energy	$30.71 billion	$864.00 million	37.52
NRG Energy Competitors	$1,468.84 billion	$1.51 billion	20.52

NRG Energy’s rivals have higher revenue and earnings than NRG Energy. NRG Energy is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

NRG Energy has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, NRG Energy’s rivals have a beta of -1.67, suggesting that their average share price is 267% less volatile than the S&P 500.

Summary

NRG Energy beats its rivals on 10 of the 15 factors compared.

About NRG Energy

NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.