Nextera Energy Partners (NYSE:NEP) vs. Datang Intl Power Generation (NYSE:DIPGY) Head-To-Head Analysis

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Nextera Energy Partners (NYSE:NEP) and Datang Intl Power Generation (OTCMKTS:DIPGY) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Profitability

This table compares Nextera Energy Partners and Datang Intl Power Generation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nextera Energy Partners -2.88% -0.44% -0.22%
Datang Intl Power Generation 1.03% 1.47% 0.35%

Risk & Volatility

Nextera Energy Partners has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Datang Intl Power Generation has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Institutional & Insider Ownership

80.8% of Nextera Energy Partners shares are owned by institutional investors. 0.6% of Nextera Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Nextera Energy Partners pays an annual dividend of $2.01 per share and has a dividend yield of 3.9%. Datang Intl Power Generation pays an annual dividend of $0.24 per share and has a dividend yield of 5.8%. Nextera Energy Partners pays out 69.1% of its earnings in the form of a dividend. Datang Intl Power Generation pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Nextera Energy Partners and Datang Intl Power Generation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nextera Energy Partners 0 1 5 0 2.83
Datang Intl Power Generation 0 0 0 0 N/A

Nextera Energy Partners currently has a consensus price target of $53.80, suggesting a potential upside of 5.32%. Given Nextera Energy Partners’ higher possible upside, analysts plainly believe Nextera Energy Partners is more favorable than Datang Intl Power Generation.

Earnings and Valuation

This table compares Nextera Energy Partners and Datang Intl Power Generation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nextera Energy Partners $771.00 million 3.72 $192.00 million $2.91 17.55
Datang Intl Power Generation $14.11 billion 0.27 $186.19 million $0.22 18.73

Nextera Energy Partners has higher earnings, but lower revenue than Datang Intl Power Generation. Nextera Energy Partners is trading at a lower price-to-earnings ratio than Datang Intl Power Generation, indicating that it is currently the more affordable of the two stocks.

Summary

Nextera Energy Partners beats Datang Intl Power Generation on 9 of the 15 factors compared between the two stocks.

About Nextera Energy Partners

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects with approximately 4,859 megawatts of capacity, as well as seven contracted natural gas pipeline assets. The company was founded in 2014 and is headquartered in Juno Beach, Florida.

About Datang Intl Power Generation

Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation, and power plant development in the People's Republic of China. It operates through Power Generation, Coal, and Other segments. The company generates electricity through various sources, such as coal-fired, thermal, hydro, wind, nuclear, solar, and natural gas. As of December 31, 2017, it managed an installed capacity of approximately 48,031.175 MW. The company also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminium smelting; the production and sale of alumina; cargo shipping; the sale of coal ash and integrated application of solid wastes; the repair and testing of power equipment; and the provision of power related technical services. The company was formerly known as Beijing Datang Power Generation Co., Ltd. The company was founded in 1994 and is headquartered in Beijing, the People's Republic of China. Datang International Power Generation Co., Ltd. is a subsidiary of China Datang Corporation Limited.

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