Analyzing NRG Energy (NYSE:NRG) and Encavis (OTCMKTS:ENCVF)

Encavis (OTCMKTS:ENCVF) and NRG Energy (NYSE:NRG) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Encavis and NRG Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Encavis	0	0	0	0	0.00
NRG Energy	0	4	10	1	2.80

NRG Energy has a consensus price target of $199.43, suggesting a potential upside of 58.08%. Given NRG Energy’s stronger consensus rating and higher probable upside, analysts plainly believe NRG Energy is more favorable than Encavis.

Institutional and Insider Ownership

97.7% of NRG Energy shares are held by institutional investors. 0.4% of NRG Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Encavis and NRG Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Encavis	N/A	N/A	N/A
NRG Energy	2.56%	52.95%	4.29%

Valuation & Earnings

This table compares Encavis and NRG Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Encavis	N/A	N/A	N/A	N/A	N/A
NRG Energy	$33.12 billion	0.80	$864.00 million	$3.78	33.38

NRG Energy has higher revenue and earnings than Encavis.

Summary

NRG Energy beats Encavis on 10 of the 10 factors compared between the two stocks.

About Encavis

Encavis AG, an independent power producer, acquires and operates solar and onshore wind parks in Germany, Italy, Spain, France, Denmark, the Netherlands, the United Kingdom, Finland, Sweden, Ireland, and Lithuania. It operates through PV Parks, Service, Wind Parks, and Asset Management segments. The company's renewable energy plant portfolio includes 230 solar parks and 90 wind farms with a capacity of approximately 3.5 gigawatts. It also provides advisory and asset management services to institutional investors in the renewable energy sector; and technical operation and maintenance services for PV parks. Encavis AG is headquartered in Hamburg, Germany.

About NRG Energy

NRG Energy, Inc., together with its subsidiaries, operates as an energy and home services company in the United States and Canada. It operates through Texas; East; West/Services/Other; Vivint Smart Home; and Corporate Activities segments. The company produces and sells electricity generated using coal, oil, solar, and battery storage; natural gas; and a cloud-based home platform, including hardware, software, sales, installation, customer service, technical support, and professional monitoring solutions. It offers retail electricity and energy management, line and surge protection products, HVAC installation, repair and maintenance, home protection products, carbon offsets, back-up power stations, portable power, portable solar, and portable lighting; retail services comprising demand response, commodity sales, energy efficiency, and energy management solutions; and system power, distributed generation, renewable and low-carbon products, carbon management and specialty services, backup generation, storage and distributed solar, and energy advisory services. In addition, the company trades in power, natural gas, and related commodities; environmental products; weather products; and financial products, including forwards, futures, options, and swaps. It offers its products and services under the NRG, Reliant, Direct Energy, Green Mountain Energy, and Vivint. It serves residential, commercial, government, industrial, and wholesale customers. NRG Energy, Inc. was founded in 1989 and is headquartered in Houston, Texas.