Head-To-Head Contrast: 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 investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

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	40.37%	12.27%	3.69%
Evergy	16.67%	10.33%	3.08%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextEra Energy	$27.41 billion	6.65	$6.83 billion	$5.55	15.66
Evergy	$5.96 billion	3.39	$855.60 million	$3.94	22.22

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.

Risk & Volatility

NextEra Energy has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

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 insiders. Comparatively, 1.5% of Evergy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds 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 2.9%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.2%. NextEra Energy pays out 44.9% of its earnings in the form of a dividend. Evergy pays out 70.6% 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for NextEra Energy and Evergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextEra Energy	0	5	16	1	2.82
Evergy	0	3	10	0	2.77

NextEra Energy currently has a consensus target price of $97.80, indicating a potential upside of 12.52%. Evergy has a consensus target price of $90.00, indicating a potential upside of 2.81%. Given NextEra Energy’s stronger consensus rating and higher possible upside, analysts clearly 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.