Analyzing NextEra Energy Partners (NYSE:NEP) and Enlight Renewable Energy (NASDAQ:ENLT)

Enlight Renewable Energy (NASDAQ:ENLT) and NextEra Energy Partners (NYSE:NEP) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

38.9% of Enlight Renewable Energy shares are owned by institutional investors. Comparatively, 66.0% of NextEra Energy Partners shares are owned by institutional investors. 0.1% of NextEra Energy Partners shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Enlight Renewable Energy and NextEra Energy Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	23.15%	4.47%	1.46%
NextEra Energy Partners	23.55%	-0.48%	-0.30%

Analyst Recommendations

This is a summary of current recommendations and price targets for Enlight Renewable Energy and NextEra Energy Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	0	2	2	0	2.50
NextEra Energy Partners	2	12	3	0	2.06

Enlight Renewable Energy presently has a consensus price target of $18.75, indicating a potential upside of 14.40%. NextEra Energy Partners has a consensus price target of $33.79, indicating a potential upside of 30.35%. Given NextEra Energy Partners’ higher probable upside, analysts clearly believe NextEra Energy Partners is more favorable than Enlight Renewable Energy.

Volatility & Risk

Enlight Renewable Energy has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, NextEra Energy Partners has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Valuation & Earnings

This table compares Enlight Renewable Energy and NextEra Energy Partners’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$255.70 million	7.41	$70.92 million	$0.51	32.14
NextEra Energy Partners	$1.08 billion	2.25	$200.00 million	$3.05	8.50

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

Summary

NextEra Energy Partners beats Enlight Renewable Energy on 8 of the 14 factors compared between the two stocks.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

About NextEra Energy Partners

NextEra Energy Partners, LP acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets consisting of wind, solar, and battery storage projects. The company owns contracted natural gas pipeline assets. NextEra Energy Partners, LP was incorporated in 2014 and is based in Juno Beach, Florida.