NextEra Energy (NYSE:NEE) vs. Premier (NYSE:PRHL) Financial Contrast

NextEra Energy (NYSE:NEE) and Premier (OTCMKTS:PRHL) are both utilities companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Insider & Institutional Ownership

76.0% of NextEra Energy shares are held by institutional investors. 0.5% of NextEra Energy shares are held by company insiders. Comparatively, 39.3% of Premier shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

NextEra Energy has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Premier has a beta of 2.81, suggesting that its stock price is 181% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NextEra Energy and Premier, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NextEra Energy 0 1 13 0 2.93
Premier 0 0 0 0 N/A

NextEra Energy currently has a consensus target price of $207.77, indicating a potential downside of 2.16%. Given NextEra Energy’s higher probable upside, equities analysts clearly believe NextEra Energy is more favorable than Premier.

Profitability

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

Net Margins Return on Equity Return on Assets
NextEra Energy 17.13% 10.26% 3.75%
Premier N/A N/A N/A

Valuation and Earnings

This table compares NextEra Energy and Premier’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NextEra Energy $16.73 billion 6.08 $6.64 billion $7.70 27.58
Premier $2.70 million 2.24 -$10.52 million N/A N/A

NextEra Energy has higher revenue and earnings than Premier.

Dividends

NextEra Energy pays an annual dividend of $5.00 per share and has a dividend yield of 2.4%. Premier does not pay a dividend. NextEra Energy pays out 64.9% of its earnings in the form of a dividend. NextEra Energy has increased its dividend for 9 consecutive years.

Summary

NextEra Energy beats Premier on 11 of the 14 factors compared between the two stocks.

NextEra Energy Company Profile

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, and natural gas-fired facilities. It also provides risk management services related to power and gas consumption. As of February 16, 2018, the company operated approximately 46,790 megawatts of net generating capacity. As of December 31, 2017, it served approximately 10 million people through approximately 5 million customer accounts in the east and lower west coasts of Florida with approximately 75,000 circuit miles of transmission and distribution lines and approximately 620 substations. 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.

Premier Company Profile

Premier Holding Corporation, through its subsidiaries, provides energy services in the United States. It offers various electricity plans and upgrades to a facility's energy infrastructure to commercial middle market companies and residential customers. The company also provides deregulated power brokerage services for small businesses, warehouses, and distribution centers. The company was formerly known as OVM International Holding Corporation and changed its name to Premier Holding Corporation in November 2008. Premier Holding Corporation was founded in 1971 and is based in Tustin, California.

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