Comparing NRG Energy (NYSE:NRG) and RED ELECTRICA C/ADR (NYSE:RDEIY)

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

Analyst Recommendations

This is a breakdown of recent recommendations for NRG Energy and RED ELECTRICA C/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRG Energy 0 2 3 1 2.83
RED ELECTRICA C/ADR 2 3 1 0 1.83

NRG Energy presently has a consensus price target of $46.83, suggesting a potential upside of 18.51%. Given NRG Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe NRG Energy is more favorable than RED ELECTRICA C/ADR.

Profitability

This table compares NRG Energy and RED ELECTRICA C/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRG Energy 10.85% -53.61% 8.27%
RED ELECTRICA C/ADR N/A N/A N/A

Dividends

NRG Energy pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. RED ELECTRICA C/ADR pays an annual dividend of $0.57 per share and has a dividend yield of 5.9%. NRG Energy pays out 5.0% of its earnings in the form of a dividend.

Volatility and Risk

NRG Energy has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, RED ELECTRICA C/ADR has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Valuation & Earnings

This table compares NRG Energy and RED ELECTRICA C/ADR’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NRG Energy $9.48 billion 1.05 $268.00 million $2.41 16.40
RED ELECTRICA C/ADR $2.19 billion N/A N/A N/A N/A

NRG Energy has higher revenue and earnings than RED ELECTRICA C/ADR.

Insider and Institutional Ownership

97.0% of NRG Energy shares are owned by institutional investors. 0.6% of NRG Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

NRG Energy beats RED ELECTRICA C/ADR on 10 of the 13 factors compared between the two stocks.

NRG Energy Company Profile

NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States. The company is involved in the producing, selling, and delivering electricity and related products and services to 3.1 million residential, industrial, and commercial consumers. It generates electricity using natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear sources. The company also provides system power, distributed generation, solar and wind products, backup generation, storage and distributed solar, demand response, energy efficiency, advisory, and on-site energy solutions; and carbon management and specialty services. In addition, it trades in electric power, natural gas, and related commodity and financial products, including forwards, futures, options, and swaps. Further, the company supplies fuels; provides transportation services; and directly sells energy, services, and products and services to retail customers under the NRG, Reliant, and other names. It develops, constructs, owns, and operates natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear plants with generation capacity of 23,000 megawatts. The company was founded in 1989 and is headquartered in Princeton, New Jersey.

RED ELECTRICA C/ADR Company Profile

Red Eléctrica Corporación, S.A. transmits electricity; operates and manages transmission network for the electricity system; and manages electricity transmission grid in Spain and internationally. Its transmission network comprises approximately 43,800 kilometers; and has 86,654 MVA of transformer capacity. The company also provides consultancy, engineering, and construction services; telecommunications infrastructure services to telecommunications operators comprising leasing of dark fiber; and line and sub-station maintenance services. Red Eléctrica Corporación, S.A. was founded in 1985 and is based in Alcobendas, Spain.

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