NextEra Energy Partners, (NEP) versus Brookfield Renewable Partners L.P. (BEP) Head-To-Head Contrast

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 stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Dividends

NextEra Energy Partners, pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Brookfield Renewable Partners L.P. pays an annual dividend of $1.87 per share and has a dividend yield of 5.5%. NextEra Energy Partners, pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Renewable Partners L.P. has raised its dividend for 3 consecutive years. Brookfield Renewable Partners L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares NextEra Energy Partners, and Brookfield Renewable Partners L.P.’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
NextEra Energy Partners,	$736.00 million	2.91	$495.00 million	$1.99	19.84
Brookfield Renewable Partners L.P.	$2.46 billion	4.08	$1.36 billion	N/A	N/A

Brookfield Renewable Partners L.P. has higher revenue and earnings than NextEra Energy Partners,.

Analyst Recommendations

This is a summary of current ratings and price targets for NextEra Energy Partners, and Brookfield Renewable Partners L.P., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextEra Energy Partners,	0	3	9	0	2.75
Brookfield Renewable Partners L.P.	0	6	3	0	2.33

NextEra Energy Partners, currently has a consensus price target of $38.50, suggesting a potential downside of 2.51%. Brookfield Renewable Partners L.P. has a consensus price target of $34.57, suggesting a potential upside of 2.22%. 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,.

Risk & Volatility

NextEra Energy Partners, has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Brookfield Renewable Partners L.P. has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

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,	13.77%	4.74%	1.40%
Brookfield Renewable Partners L.P.	2.82%	0.76%	0.33%

Institutional & Insider Ownership

85.3% of NextEra Energy Partners, shares are held by institutional investors. Comparatively, 54.2% of Brookfield Renewable Partners L.P. shares are held by institutional investors. 0.5% of NextEra Energy Partners, shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

NextEra Energy Partners, beats Brookfield Renewable Partners L.P. on 8 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

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.