Brookfield Renewable Partners vs NextEra Energy Which Is a Better Investment?

Brookfield Renewable Partners and NextEra Energy are two prominent players in the renewable energy sector, both offering investors the opportunity to capitalize on the growing demand for clean energy solutions. Brookfield Renewable Partners focuses on owning and operating a diverse portfolio of renewable energy assets, while NextEra Energy is one of the largest renewable energy companies in the world, with a strong emphasis on wind and solar power generation. Investors looking to invest in the future of sustainable energy may find value in both of these stocks.

Brookfield Renewable Partners or NextEra Energy?

When comparing Brookfield Renewable Partners and NextEra Energy, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Brookfield Renewable Partners and NextEra Energy.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Brookfield Renewable Partners has a dividend yield of 5.54%, while NextEra Energy has a dividend yield of 3.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brookfield Renewable Partners reports a 5-year dividend growth of -7.18% year and a payout ratio of -872.96%. On the other hand, NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Brookfield Renewable Partners P/E ratio at -102.18 and NextEra Energy's P/E ratio at 22.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brookfield Renewable Partners P/B ratio is 3.02 while NextEra Energy's P/B ratio is 3.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brookfield Renewable Partners has seen a 5-year revenue growth of 0.28%, while NextEra Energy's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield Renewable Partners's ROE at -2.64% and NextEra Energy's ROE at 14.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.23 for Brookfield Renewable Partners and $73.69 for NextEra Energy. Over the past year, Brookfield Renewable Partners's prices ranged from $19.92 to $29.56, with a yearly change of 48.39%. NextEra Energy's prices fluctuated between $53.95 and $86.10, with a yearly change of 59.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.