NextEra Energy Partners, (NYSE: NEP) and Brookfield Renewable Partners L.P. (NYSE:BEP) are both mid-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitabiliy.
Profitability
This table compares NextEra Energy Partners, and Brookfield Renewable Partners L.P.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NextEra Energy Partners, | 13.70% | 4.69% | 1.37% |
| Brookfield Renewable Partners L.P. | -1.34% | -0.10% | -0.04% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for NextEra Energy Partners, and Brookfield Renewable Partners L.P., as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NextEra Energy Partners, | 0 | 3 | 8 | 0 | 2.73 |
| Brookfield Renewable Partners L.P. | 0 | 6 | 3 | 0 | 2.33 |
NextEra Energy Partners, presently has a consensus target price of $37.78, suggesting a potential downside of 4.51%. Brookfield Renewable Partners L.P. has a consensus target price of $36.00, suggesting a potential upside of 7.46%. Given Brookfield Renewable Partners L.P.’s higher probable upside, analysts plainly believe Brookfield Renewable Partners L.P. is more favorable than NextEra Energy Partners,.
Dividends
NextEra Energy Partners, pays an annual dividend of $1.46 per share and has a dividend yield of 3.7%. Brookfield Renewable Partners L.P. pays an annual dividend of $1.87 per share and has a dividend yield of 5.6%. NextEra Energy Partners, pays out 75.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NextEra Energy Partners, has raised its dividend for 3 consecutive years.
Valuation & Earnings
This table compares NextEra Energy Partners, and Brookfield Renewable Partners L.P.’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| NextEra Energy Partners, | $719.00 million | 2.98 | $491.00 million | $1.94 | 20.39 |
| Brookfield Renewable Partners L.P. | $2.46 billion | 4.04 | $1.36 billion | N/A | N/A |
Brookfield Renewable Partners L.P. has higher revenue and earnings than NextEra Energy Partners,.
Insider and Institutional Ownership
85.6% of NextEra Energy Partners, shares are held by institutional investors. Comparatively, 54.4% of Brookfield Renewable Partners L.P. shares are held by institutional investors. 0.5% of NextEra Energy Partners, shares are held 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.
Volatility & Risk
NextEra Energy Partners, has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Brookfield Renewable Partners L.P. has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.
Summary
NextEra Energy Partners, beats Brookfield Renewable Partners L.P. on 9 of the 15 factors compared between the two stocks.
NextEra Energy Partners, Company Profile
Nextera Energy Partners, LP is a limited partnership formed to acquire, manage and own contracted clean energy projects. The Company, through its limited partnership interest in NextEra Energy Operating Partners, LP (NEP OpCo), owns a portfolio of contracted renewable generation assets consisting of wind and solar projects, as well as contracted natural gas pipeline assets. The Company’s primary business objective is to invest in contracted clean energy projects. As of December 31, 2016, the Company’s project portfolio of clean, contracted renewable energy assets (initial portfolio) included approximately 989 megawatts (MW) of wind and solar energy generating facilities located in the United States and Canada. As of December 31, 2016, the Company’s portfolio included Genesis, Northern Colorado, Tuscola Bay, Elk City, Perrin Ranch, Bluewater, Moore, Sombra, Shafter, Palo Duro, Stateline, Mammoth Plains, Jericho, Cedar Bluff Wind and Golden Hills Wind.
Brookfield Renewable Partners L.P. Company Profile
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Brookfield Renewable Partners L.P., formerly Brookfield Renewable Energy Partners L.P., is the owner and operator of a portfolio of assets that generate electricity from renewable resources. The Company operates as a pure-play renewable power platform. Its segments include Hydroelectric, Wind, Other and Corporate. It operates renewable power generating assets, which include conventional hydroelectric facilities and wind facilities located in North America, Colombia, Brazil and Europe. It also operates approximately four biomass facilities and three Co-gen facilities. It owns approximately 10,730 megawatts (MW) of installed capacity and an over 6,000 MW development pipeline diversified across 15 power markets in North America, Colombia, Brazil and Europe. This portfolio includes approximately 217 hydroelectric generating stations on over 82 river systems and approximately 38 wind facilities. Its portfolio also includes over 3,000 MW of medium to long-term development projects.
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