Entergy (ETR) and Clearway Energy Inc Class C (NYLD) Financial Contrast

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Entergy (NYSE:ETR) and Clearway Energy Inc Class C (NYSE:NYLD) are both utilities companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Dividends

Entergy pays an annual dividend of $3.64 per share and has a dividend yield of 3.8%. Clearway Energy Inc Class C pays an annual dividend of $1.28 per share. Entergy pays out 49.8% of its earnings in the form of a dividend. Entergy has raised its dividend for 4 consecutive years and Clearway Energy Inc Class C has raised its dividend for 2 consecutive years. Entergy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for Entergy and Clearway Energy Inc Class C, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Entergy 0 6 7 0 2.54
Clearway Energy Inc Class C 0 1 0 0 2.00

Entergy currently has a consensus price target of $90.05, indicating a potential downside of 6.32%. Clearway Energy Inc Class C has a consensus price target of $20.00, indicating a potential upside of ∞. Given Clearway Energy Inc Class C’s higher probable upside, analysts plainly believe Clearway Energy Inc Class C is more favorable than Entergy.

Valuation and Earnings

This table compares Entergy and Clearway Energy Inc Class C’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Entergy $11.01 billion 1.66 $862.55 million $7.31 13.15
Clearway Energy Inc Class C N/A N/A N/A N/A N/A

Entergy has higher revenue and earnings than Clearway Energy Inc Class C.

Profitability

This table compares Entergy and Clearway Energy Inc Class C’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Entergy 7.83% 16.22% 2.81%
Clearway Energy Inc Class C N/A N/A N/A

Insider & Institutional Ownership

88.6% of Entergy shares are owned by institutional investors. Comparatively, 29.6% of Clearway Energy Inc Class C shares are owned by institutional investors. 0.3% of Entergy shares are owned by insiders. Comparatively, 0.2% of Clearway Energy Inc Class C 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.

Summary

Entergy beats Clearway Energy Inc Class C on 10 of the 12 factors compared between the two stocks.

Entergy Company Profile

Entergy Corporation, together with its subsidiaries, engages in the production and distribution of electricity in the United States. It generates electricity through gas/oil, nuclear, coal, hydro, and solar power sources. The company's Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and distributes natural gas. Its Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants located in the northern United States; sale of electric power to wholesale customers; provision of services to other nuclear power plant owners; and owning interests in non-nuclear power plants that sell electric power to wholesale customers. This segment sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 30,000 megawatts (MW) of electric generating capacity, including approximately 9,000 MW of nuclear power. The company delivers electricity to 2.9 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1949 and is based in New Orleans, Louisiana.

Clearway Energy Inc Class C Company Profile

Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2017, it had contracted renewable and conventional generation portfolio of 5,118 net megawatt (MW). The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,319 net MW thermal equivalents, and electric generation capacity of 123 net MW. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. NRG Yield, Inc. is a subsidiary of Global Infrastructure Partners.

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