Nextera Energy Partners (NYSE:NEP) & OGE Energy (NYSE:OGE) Critical Survey

Nextera Energy Partners (NYSE:NEP) and OGE Energy (NYSE:OGE) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for Nextera Energy Partners and OGE Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextera Energy Partners	2	0	0	0	1.00
OGE Energy	0	2	3	0	2.60

Nextera Energy Partners currently has a consensus target price of $10.00, suggesting a potential upside of 0.00%. OGE Energy has a consensus target price of $46.25, suggesting a potential upside of 1.58%. Given OGE Energy’s stronger consensus rating and higher probable upside, analysts clearly believe OGE Energy is more favorable than Nextera Energy Partners.

Institutional & Insider Ownership

66.0% of Nextera Energy Partners shares are owned by institutional investors. Comparatively, 71.8% of OGE Energy shares are owned by institutional investors. 0.1% of Nextera Energy Partners shares are owned by company insiders. Comparatively, 0.5% of OGE Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Nextera Energy Partners pays an annual dividend of $3.67 per share. OGE Energy pays an annual dividend of $1.68 per share and has a dividend yield of 3.7%. Nextera Energy Partners pays out -3,670.0% of its earnings in the form of a dividend. OGE Energy 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. OGE Energy has increased its dividend for 18 consecutive years. OGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextera Energy Partners	-0.73%	1.34%	0.85%
OGE Energy	14.79%	9.71%	3.31%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A
OGE Energy	$2.99 billion	3.07	$416.80 million	$2.20	20.70

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

Risk and Volatility

Nextera Energy Partners has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, OGE Energy has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Summary

OGE Energy beats Nextera Energy Partners on 14 of the 16 factors compared between the two stocks.

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.

About OGE Energy

OGE Energy Corp., together with its subsidiaries, operates as an energy services provider in the United States. The company generates, transmits, distributes, and sells electric energy. In addition, it provides retail electric service to approximately 896,000 customers, which covers a service area of approximately 30,000 square miles in Oklahoma and western Arkansas; and owns and operates coal-fired, natural gas-fired, wind-powered, and solar-powered generating assets. OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.