NextEra Energy vs Brookfield Renewable Partners Which Is a Smarter Choice?

NextEra Energy and Brookfield Renewable Partners are two leading companies in the renewable energy sector, with a focus on clean energy production and sustainability. NextEra Energy is one of the largest renewable energy companies in the world, known for its innovative approach to projects such as wind and solar power. Brookfield Renewable Partners, on the other hand, is a global leader in hydroelectric, wind, and solar power generation. Both companies offer investors the opportunity to participate in the growing demand for clean energy solutions.

NextEra Energy or Brookfield Renewable Partners?

When comparing NextEra Energy and Brookfield Renewable Partners, 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 NextEra Energy and Brookfield Renewable Partners.

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. NextEra Energy has a dividend yield of 2.81%, while Brookfield Renewable Partners has a dividend yield of 5.96%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%. On the other hand, Brookfield Renewable Partners reports a 5-year dividend growth of -7.18% year and a payout ratio of -617.21%.

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 NextEra Energy P/E ratio at 21.63 and Brookfield Renewable Partners's P/E ratio at -39.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NextEra Energy P/B ratio is 3.00 while Brookfield Renewable Partners's P/B ratio is 0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NextEra Energy has seen a 5-year revenue growth of 0.57%, while Brookfield Renewable Partners's is 0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NextEra Energy's ROE at 14.24% and Brookfield Renewable Partners's ROE at -5.23%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $73.09 for NextEra Energy and $23.59 for Brookfield Renewable Partners. Over the past year, NextEra Energy's prices ranged from $53.95 to $86.10, with a yearly change of 59.59%. Brookfield Renewable Partners's prices fluctuated between $19.92 and $29.56, with a yearly change of 48.39%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.