Head-to-head review of Brookfield Renewable (NYSE:BEPC) vs. NRG Energy (NYSE:NRG)

NRG Energy (NYSE:NRG – Get Free Report) and Brookfield Renewable (NYSE:BEPC – Get Free Report) are both utilities, but which industry is better? We will compare these two companies on their profitability strength, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst recommendations

Below is a summary of the latest ratings and recommendations for NRG Energy and Brookfield Renewable from MarketBeat.com.

NRG Energy currently has a consensus price target of $65.50, suggesting a potential downside of 23.84%. The consensus price target for Brookfield Renewable is $34.00, suggesting a potential upside of ∞. Given Brookfield Renewable’s stronger consensus rating and higher likely growth, analysts clearly believe Brookfield Renewable is superior to NRG Energy.

Profitability

The table below compares the net margins, return on equity and return on assets of NRG Energy and Brookfield Renewable.

Institutional and internal ownership

97.7% of NRG Energy shares are in the hands of institutional investors. For comparison, 75.1% of Brookfield Renewable shares are in the hands of institutional investors. 0.6% of NRG Energy shares are owned by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers and foundations believe the stock has potential for long-term growth.

Earnings and valuation

The table below compares the revenue, earnings per share and valuation of NRG Energy and Brookfield Renewable.

Brookfield Renewable has lower revenues but higher profits than NRG Energy. Brookfield Renewable is trading at a lower price-to-earnings ratio than NRG Energy, indicating that it is currently the cheaper of the two stocks.

Volatility and risk

NRG Energy’s beta value is 1.11, which means its stock price is 11% more volatile than the S&P 500. By comparison, Brookfield Renewable has a beta of 1.09, which means its stock price is 9% more volatile than the S&P 500.

Dividends

NRG Energy pays an annual dividend of $1.63 per share and has a dividend yield of 1.9%. Brookfield Renewable pays an annual dividend of $1.42 per share. NRG Energy pays out 23.1% of its profits as dividends. Brookfield Renewable pays out -308.7% of its earnings as dividends. Both companies have good payout ratios and should be able to cover their dividend payments with profits over the next few years. NRG Energy has increased its dividend for 5 years in a row. NRG Energy is clearly a better dividend stock given its higher yield and longer history of dividend growth.

summary

NRG Energy beats Brookfield Renewable in 11 of 16 factors compared between the two companies.

About NRG Energy

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NRG Energy, Inc. together with its subsidiaries, operates as an energy and home services company in the United States and Canada. Operates in Texas; East; West/Services/Other; Vivinta smart home; and Corporate Business segments. The company produces and sells electricity generated using coal, oil, solar energy and batteries; natural gas; and a cloud-based home platform including hardware, software, sales, installation, customer service, technical support and professional monitoring solutions. Offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsetting, backup power plants, portable power supplies, portable solar panels and portable lighting; retail services including demand response, merchandising, energy efficiency and energy management solutions; and system capacity, distributed generation, renewable and low carbon products, carbon management and professional services, backup generation, storage and distributed solar, and energy advisory services. Additionally, the company trades in energy, natural gas and related goods; ecological 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 brands. Serves residential, commercial, government, industrial and wholesale clients. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.

About Brookfield Renewable

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Brookfield Renewable Corporation owns and operates a portfolio of renewable energy and sustainable assets primarily in the United States, Europe, Colombia and Brazil. It operates hydro, wind, solar, distributed and sustainable solutions with an installed capacity of approximately 19,161 megawatts. The company was founded in 2019 and is headquartered in New York, New York. Brookfield Renewable Corporation operates as a subsidiary of Brookfield BRP Holdings (Canada) Inc.

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