Eversource Energy (NYSE:ES – Get Free Report) and Evergy (NASDAQ:EVRG – Get Free Report) are both large-cap utilities companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.
Insider and Institutional Ownership
80.0% of Eversource Energy shares are owned by institutional investors. Comparatively, 87.2% of Evergy shares are owned by institutional investors. 0.4% of Eversource Energy shares are owned by insiders. Comparatively, 1.4% of Evergy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Eversource Energy and Evergy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eversource Energy | $11.90 billion | 2.32 | $811.65 million | $3.65 | 20.17 |
| Evergy | $5.88 billion | 3.03 | $873.50 million | $3.65 | 21.19 |
Evergy has lower revenue, but higher earnings than Eversource Energy. Eversource Energy is trading at a lower price-to-earnings ratio than Evergy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Eversource Energy and Evergy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eversource Energy | 3 | 6 | 4 | 0 | 2.08 |
| Evergy | 0 | 1 | 9 | 1 | 3.00 |
Eversource Energy currently has a consensus target price of $72.70, suggesting a potential downside of 1.23%. Evergy has a consensus target price of $80.72, suggesting a potential upside of 4.37%. Given Evergy’s stronger consensus rating and higher probable upside, analysts plainly believe Evergy is more favorable than Eversource Energy.
Risk & Volatility
Eversource Energy has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Evergy has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Dividends
Eversource Energy pays an annual dividend of $3.01 per share and has a dividend yield of 4.1%. Evergy pays an annual dividend of $2.78 per share and has a dividend yield of 3.6%. Eversource Energy pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Evergy pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy has increased its dividend for 2 consecutive years and Evergy has increased its dividend for 20 consecutive years.
Profitability
This table compares Eversource Energy and Evergy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eversource Energy | 10.22% | 11.06% | 2.83% |
| Evergy | 14.29% | 8.62% | 2.66% |
Summary
Evergy beats Eversource Energy on 12 of the 17 factors compared between the two stocks.
About Eversource Energy
Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.
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.
Receive News & Ratings for Eversource Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eversource Energy and related companies with MarketBeat.com's FREE daily email newsletter.
