Analyzing Nextera Energy Partners (NYSE:NEP) & Altus Power (NYSE:AMPS)

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

Analyst Ratings

This is a summary of recent ratings for Altus Power and Nextera Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altus Power	0	7	2	0	2.22
Nextera Energy Partners	2	0	0	0	1.00

Altus Power presently has a consensus price target of $4.86, suggesting a potential downside of 2.76%. Nextera Energy Partners has a consensus price target of $10.00, suggesting a potential upside of 0.00%. Given Nextera Energy Partners’ higher probable upside, analysts clearly believe Nextera Energy Partners is more favorable than Altus Power.

Dividends

Altus Power pays an annual dividend of $1.59 per share and has a dividend yield of 31.8%. Nextera Energy Partners pays an annual dividend of $3.67 per share. Altus Power pays out 15,900.0% 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 pays out -3,670.0% of its earnings in the form of a dividend. Nextera Energy Partners has increased its dividend for 10 consecutive years.

Insider & Institutional Ownership

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Altus Power	19.18%	4.79%	1.16%
Nextera Energy Partners	-0.73%	1.34%	0.85%

Risk and Volatility

Altus Power has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Nextera Energy Partners has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altus Power	$196.27 million	4.08	-$9.35 million	$0.01	499.50
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A

Altus Power has higher earnings, but lower revenue than Nextera Energy Partners. 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.

Summary

Altus Power beats Nextera Energy Partners on 10 of the 16 factors compared between the two stocks.

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.

About Nextera Energy Partners

NextEra Energy Partners LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.