Eversource Energy (NYSE:ES) vs. NorthWestern (NASDAQ:NWE) Financial Contrast

Eversource Energy (NYSE:ES) and NorthWestern (NASDAQ:NWE) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Eversource Energy and NorthWestern, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eversource Energy	3	5	4	0	2.08
NorthWestern	1	2	3	0	2.33

Eversource Energy currently has a consensus target price of $71.91, suggesting a potential downside of 4.05%. NorthWestern has a consensus target price of $70.10, suggesting a potential downside of 4.33%. Given Eversource Energy’s higher probable upside, research analysts plainly believe Eversource Energy is more favorable than NorthWestern.

Dividends

Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.2%. NorthWestern pays an annual dividend of $2.68 per share and has a dividend yield of 3.7%. Eversource Energy pays out 67.3% of its earnings in the form of a dividend. NorthWestern pays out 98.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy has increased its dividend for 2 consecutive years and NorthWestern has increased its dividend for 21 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Eversource Energy and NorthWestern’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eversource Energy	12.55%	11.59%	2.97%
NorthWestern	10.21%	7.80%	2.69%

Valuation & Earnings

This table compares Eversource Energy and NorthWestern”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eversource Energy	$13.55 billion	2.08	$1.69 billion	$4.68	16.01
NorthWestern	$1.61 billion	2.80	$181.09 million	$2.72	26.94

Eversource Energy has higher revenue and earnings than NorthWestern. Eversource Energy is trading at a lower price-to-earnings ratio than NorthWestern, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 96.1% of NorthWestern shares are owned by institutional investors. 0.2% of Eversource Energy shares are owned by company insiders. Comparatively, 0.9% of NorthWestern shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Eversource Energy has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, NorthWestern has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Summary

Eversource Energy beats NorthWestern on 11 of the 17 factors compared between the two stocks.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.

About NorthWestern

NorthWestern Energy Group, Inc. provides electricity and natural gas to residential, commercial, and various industrial customers. It generates, purchases, transmits, and distributes electricity; and produces, purchases, stores, transmits, and distributes natural gas, as well as owns municipal franchises to provide natural gas service in the communities. The company operates 6,600 miles of electric transmission and 18,674 miles of electric distribution lines with approximately 395 transmission and distribution substations; and 2,235 miles of natural gas transmission and 5,155 miles of natural gas distribution lines with approximately 133 city gate stations in Montana. It also operates 1,310 miles of electric transmission and 2,365 miles of electric distribution lines in South Dakota with approximately 124 transmission and distribution substations; and 55 miles of natural gas transmission and 2,573 miles of natural gas distribution lines in South Dakota and Nebraska. The company provides electricity and/or natural gas to approximately 775,300 customers in Montana, South Dakota, Nebraska, and Yellowstone National Park. NorthWestern Energy Group, Inc. was founded in 1923 and is based in Sioux Falls, South Dakota.