Head-To-Head Comparison: Ocean Power Technologies (NASDAQ:OPTT) and Nextera Energy Partners (NYSE:NEP)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ocean Power Technologies and Nextera Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocean Power Technologies	0	0	0	0	0.00
Nextera Energy Partners	2	0	0	0	1.00

Nextera Energy Partners has a consensus target price of $10.00, indicating a potential upside of 0.00%. Given Nextera Energy Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Nextera Energy Partners is more favorable than Ocean Power Technologies.

Earnings & Valuation

This table compares Ocean Power Technologies and Nextera Energy Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocean Power Technologies	$6.12 million	14.71	-$27.48 million	($0.25)	-2.09
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A

Nextera Energy Partners has higher revenue and earnings than Ocean Power Technologies. Ocean Power Technologies is trading at a lower price-to-earnings ratio than Nextera Energy Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ocean Power Technologies	-304.91%	-97.03%	-72.36%
Nextera Energy Partners	-0.73%	1.34%	0.85%

Institutional & Insider Ownership

11.9% of Ocean Power Technologies shares are held by institutional investors. Comparatively, 66.0% of Nextera Energy Partners shares are held by institutional investors. 1.0% of Ocean Power Technologies 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, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Ocean Power Technologies has a beta of 2.62, indicating that its share price is 162% more 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.

Summary

Nextera Energy Partners beats Ocean Power Technologies on 9 of the 12 factors compared between the two stocks.

About Ocean Power Technologies

Ocean Power Technologies, Inc. develops and commercializes proprietary power platforms that generate electricity by harnessing the renewable energy of ocean waves in North America, South America, Australia, and Asia. It offers PB3 PowerBuoy that generates power for use independent of the power grid in offshore locations. The company also provides Next Generation PowerBuoy; subsea battery systems; and software, controls, sensors, integration services, and marine installation services. In addition, it offers Wave Adaptive Modular Vessel (WAM-V) technology, which enables roaming capabilities for uncrewed maritime systems in waters; leases WAM-V robotics and access information; maritime domain awareness solutions; and strategic consulting services. Further, the company provides offshore data collection, integration, analytics, and real time communication for various applications. It serves public and private entities, and agencies that require remote offshore power. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Monroe Township, New Jersey.

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.