Nextera Energy Partners (NYSE:NEP) vs. Pampa Energía (NYSE:PAM) Head to Head Review

Pampa Energía (NYSE:PAM) and Nextera Energy Partners (NYSE:NEP) are both utilities companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pampa Energía and Nextera Energy Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pampa Energía	0	3	1	0	2.25
Nextera Energy Partners	2	0	0	0	1.00

Pampa Energía presently has a consensus price target of $71.63, indicating a potential downside of 5.06%. Nextera Energy Partners has a consensus price target of $10.00, indicating a potential upside of 0.00%. Given Nextera Energy Partners’ higher possible upside, analysts clearly believe Nextera Energy Partners is more favorable than Pampa Energía.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pampa Energía	19.86%	12.15%	6.57%
Nextera Energy Partners	-0.73%	1.34%	0.85%

Institutional and Insider Ownership

12.8% of Pampa Energía shares are owned by institutional investors. Comparatively, 66.0% of Nextera Energy Partners shares are owned by institutional investors. 55.5% of Pampa Energía shares are owned by insiders. Comparatively, 0.1% of Nextera Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Pampa Energía has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Nextera Energy Partners has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Pampa Energía and Nextera Energy Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pampa Energía	$1.88 billion	2.19	$302.00 million	$11.30	6.68
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A

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

Summary

Pampa Energía beats Nextera Energy Partners on 11 of the 13 factors compared between the two stocks.

About Pampa Energía

Pampa Energía S.A. operates as an integrated power company in Argentina. The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments. It generates electricity through thermal plants, hydroelectric plants, and wind farms with a 5,332 megawatt (MW) installed capacity. The company also explores for and produces oil and gas in the provinces of Neuquén and Río Negro. In addition, it produces petrochemicals, such as styrene, synthetic rubber, and polystyrene. Further, the company operates and maintains a 22,391 km high-voltage electricity transmission network in Argentina. Additionally, it holds a concession for the transportation of natural gas with 9,248 km of gas pipelines in the center, west, and south of Argentina; and processes and sells natural gas liquids in Bahía Blanca in the Province of Buenos Aires, as well as offers related advisory services. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in September 2008. Pampa Energía S.A. was incorporated in 1945 and is based in Buenos Aires, Argentina.

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.