Comparing NextEra Energy (NYSE:NEE) & Evergy (NASDAQ:EVRG)

NextEra Energy (NYSE:NEE) and Evergy (NASDAQ:EVRG) are both large-cap utilities companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Institutional & Insider Ownership

78.7% of NextEra Energy shares are held by institutional investors. Comparatively, 87.2% of Evergy shares are held by institutional investors. 0.2% of NextEra Energy shares are held by company insiders. Comparatively, 1.5% of Evergy shares are held 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.

Dividends

NextEra Energy pays an annual dividend of $2.49 per share and has a dividend yield of 2.8%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.2%. NextEra Energy pays out 56.0% of its earnings in the form of a dividend. Evergy pays out 73.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NextEra Energy has raised its dividend for 31 consecutive years and Evergy has raised its dividend for 20 consecutive years.

Volatility & Risk

NextEra Energy has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares NextEra Energy and Evergy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextEra Energy	$27.87 billion	6.71	$6.83 billion	$4.45	20.16
Evergy	$5.96 billion	3.37	$855.60 million	$3.77	23.12

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NextEra Energy	29.36%	12.25%	3.78%
Evergy	14.63%	9.09%	2.75%

Analyst Recommendations

This is a breakdown of current ratings for NextEra Energy and Evergy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextEra Energy	0	6	15	2	2.83
Evergy	0	3	8	0	2.73

NextEra Energy presently has a consensus target price of $99.23, indicating a potential upside of 10.59%. Evergy has a consensus target price of $90.60, indicating a potential upside of 3.92%. Given NextEra Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe NextEra Energy is more favorable than Evergy.

Summary

NextEra Energy beats Evergy on 14 of the 18 factors compared between the two stocks.

About NextEra Energy

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,natural gas, and other clean energy. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. The company had approximately 33,276 megawatts of net generating capacity; approximately 90,000 circuit miles of transmission and distribution lines; and 883 substations. It serves approximately 12 million people through approximately 5.9 million customer accounts in the east and lower west coasts of Florida. 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.

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.