NRG Yield (NYSE: NYLD) is one of 84 public companies in the “Electric Utilities” industry, but how does it weigh in compared to its peers? We will compare NRG Yield to related businesses based on the strength of its earnings, analyst recommendations, valuation, profitability, dividends, institutional ownership and risk.

Profitability

This table compares NRG Yield and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRG Yield 4.10% 1.76% 0.48%
NRG Yield Competitors -10.86% 3.67% 0.58%

Analyst Recommendations

This is a summary of recent ratings for NRG Yield and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Yield 0 6 3 0 2.33
NRG Yield Competitors 532 2948 2373 41 2.33

NRG Yield currently has a consensus price target of $19.57, suggesting a potential upside of 0.11%. As a group, “Electric Utilities” companies have a potential upside of 6.91%. Given NRG Yield’s peers higher probable upside, analysts clearly believe NRG Yield has less favorable growth aspects than its peers.

Insider & Institutional Ownership

28.5% of NRG Yield shares are held by institutional investors. Comparatively, 65.5% of shares of all “Electric Utilities” companies are held by institutional investors. 0.2% of NRG Yield shares are held by company insiders. Comparatively, 2.7% of shares of all “Electric Utilities” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

NRG Yield has a beta of 2.53, meaning that its share price is 153% more volatile than the S&P 500. Comparatively, NRG Yield’s peers have a beta of 0.65, meaning that their average share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares NRG Yield and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
NRG Yield $1.02 billion $67.00 million 46.55
NRG Yield Competitors $7.66 billion $831.80 million 49.61

NRG Yield’s peers have higher revenue and earnings than NRG Yield. NRG Yield is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

NRG Yield pays an annual dividend of $1.12 per share and has a dividend yield of 5.7%. NRG Yield pays out 266.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Electric Utilities” companies pay a dividend yield of 3.2% and pay out 100.7% of their earnings in the form of a dividend.

Summary

NRG Yield peers beat NRG Yield on 11 of the 15 factors compared.

NRG Yield Company Profile

NRG Yield, Inc. serves as the primary vehicle, through which NRG Energy, Inc. owns, operates and acquires contracted renewable and conventional generation and thermal infrastructure assets. It owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. Its contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net megawatt. The Company also own thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,098 net megawatt and electric generation capacity of 123 net megawatt. In July 2014, NRG Yield Inc completed its acquisition of three Right of First Offer (ROFO) assets from NRG Energy, Inc. In August 2014, it acquired Alta Wind facility located in Tehachapi, California from Terra-Gen Power LLC.

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