Constellation Energy vs Eversource Energy Which Performs Better?

Constellation Energy and Eversource Energy are two prominent companies in the energy industry, each offering unique investment opportunities for shareholders. Constellation Energy, a subsidiary of Exelon Corporation, focuses on providing electricity, natural gas, and renewable energy solutions to customers across the United States. On the other hand, Eversource Energy is a utility company that delivers electricity and natural gas to customers in Connecticut, Massachusetts, and New Hampshire. Investors interested in the energy sector may find value in comparing and analyzing the stocks of these two companies for potential investment opportunities.

Constellation Energy or Eversource Energy?

When comparing Constellation Energy and Eversource 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 Constellation Energy and Eversource 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. Constellation Energy has a dividend yield of 0.59%, while Eversource Energy has a dividend yield of 4.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Constellation Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.75%. On the other hand, Eversource Energy reports a 5-year dividend growth of 5.97% year and a payout ratio of -178.91%.

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 Constellation Energy P/E ratio at 26.15 and Eversource Energy's P/E ratio at -38.95. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Constellation Energy P/B ratio is 5.95 while Eversource Energy's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Constellation Energy has seen a 5-year revenue growth of 0.23%, while Eversource Energy's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Constellation Energy's ROE at 24.81% and Eversource Energy's ROE at -3.75%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $236.50 for Constellation Energy and $59.26 for Eversource Energy. Over the past year, Constellation Energy's prices ranged from $109.44 to $288.75, with a yearly change of 163.85%. Eversource Energy's prices fluctuated between $52.09 and $69.01, with a yearly change of 32.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.