Financial Survey: Altus Power (NYSE:AMPS) and NextEra Energy Partners (NYSE:NEP)

NextEra Energy Partners (NYSE:NEP) and Altus Power (NYSE:AMPS) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NextEra Energy Partners	17.47%	-1.07%	-0.68%
Altus Power	19.18%	4.79%	1.16%

Volatility and Risk

NextEra Energy Partners has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Altus Power has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Institutional & Insider Ownership

66.0% of NextEra Energy Partners shares are held by institutional investors. Comparatively, 46.5% of Altus Power shares are held by institutional investors. 0.1% of NextEra Energy Partners shares are held by company insiders. Comparatively, 24.3% of Altus Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for NextEra Energy Partners and Altus Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextEra Energy Partners	2	11	4	0	2.12
Altus Power	1	1	5	2	2.89

NextEra Energy Partners presently has a consensus target price of $26.00, suggesting a potential upside of 45.54%. Altus Power has a consensus target price of $5.21, suggesting a potential upside of 36.86%. Given NextEra Energy Partners’ higher probable upside, equities research analysts plainly believe NextEra Energy Partners is more favorable than Altus Power.

Earnings & Valuation

This table compares NextEra Energy Partners and Altus Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextEra Energy Partners	$1.17 billion	1.43	$200.00 million	$2.18	8.19
Altus Power	$185.99 million	3.29	-$9.35 million	$0.22	17.32

NextEra Energy Partners has higher revenue and earnings than Altus Power. NextEra Energy Partners is trading at a lower price-to-earnings ratio than Altus Power, indicating that it is currently the more affordable of the two stocks.

Dividends

NextEra Energy Partners pays an annual dividend of $3.67 per share and has a dividend yield of 20.5%. Altus Power pays an annual dividend of $1.59 per share and has a dividend yield of 41.7%. NextEra Energy Partners pays out 168.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Altus Power pays out 722.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Altus Power beats NextEra Energy Partners on 10 of the 17 factors compared between the two stocks.

About NextEra Energy Partners

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets consisting of wind, solar, and battery storage projects. The company owns contracted natural gas pipeline assets. NextEra Energy Partners, LP was incorporated in 2014 and is based in Juno Beach, Florida.

About Altus Power

Altus Power, Inc., a clean electrification company, develops, owns, constructs, and operates roof, ground, and carport-based photovoltaic solar energy generation and storage systems. It serves commercial, industrial, public sector, and community solar customers. Altus Power, Inc. was founded in 2013 and is headquartered in Stamford, Connecticut.