NRG Energy (NYSE:NRG – Get Free Report) and Centuri (NYSE:CTRI – Get Free Report) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
NRG Energy has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Centuri has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Insider & Institutional Ownership
97.7% of NRG Energy shares are owned by institutional investors. 0.4% of NRG Energy shares are owned by company insiders. Comparatively, 0.3% of Centuri shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NRG Energy | $30.71 billion | 0.89 | $864.00 million | $0.85 | 152.69 |
| Centuri | $2.98 billion | 1.02 | $22.40 million | $0.34 | 88.84 |
NRG Energy has higher revenue and earnings than Centuri. Centuri is trading at a lower price-to-earnings ratio than NRG Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings for NRG Energy and Centuri, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NRG Energy | 0 | 4 | 10 | 1 | 2.80 |
| Centuri | 2 | 1 | 2 | 0 | 2.00 |
NRG Energy presently has a consensus target price of $199.69, indicating a potential upside of 53.86%. Centuri has a consensus target price of $37.80, indicating a potential upside of 25.15%. Given NRG Energy’s stronger consensus rating and higher possible upside, analysts clearly believe NRG Energy is more favorable than Centuri.
Profitability
This table compares NRG Energy and Centuri’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NRG Energy | 0.74% | 70.67% | 4.95% |
| Centuri | 0.98% | 5.64% | 1.81% |
Summary
NRG Energy beats Centuri on 13 of the 15 factors compared between the two stocks.
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.
About Centuri
Centuri Holdings, Inc. operates as a utility infrastructure services company in North America. It offers gas utility services, including maintenance, repair, installation, and replacement services for natural gas local distribution utility companies with focus on the modernization of infrastructure. The company also provides electric utility services comprising design, maintenance and repair, upgrade, and expansion services for transmission and distribution infrastructure. Its customers include electric, gas, and combination utility companies, as well as serves end markets, such as renewable energy and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.
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