NextEra Energy vs NextEra Energy Partners Which Is Stronger?

NextEra Energy is a leading clean energy company with a focus on renewable energy sources such as wind and solar power. NextEra Energy Partners is a subsidiary of NextEra Energy that specializes in owning and operating clean energy projects. Both stocks offer investors the opportunity to participate in the growing renewable energy sector, with solid financial performance and sustainability efforts. While NextEra Energy is the parent company with a broader portfolio, NextEra Energy Partners offers a more focused investment in clean energy projects.

NextEra Energy or NextEra Energy Partners?

When comparing NextEra Energy and NextEra Energy 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 NextEra Energy 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 3.33%, while NextEra Energy Partners has a dividend yield of 26.1%. 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, NextEra Energy Partners reports a 5-year dividend growth of 14.55% year and a payout ratio of 383.82%.

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 22.42 and NextEra Energy Partners's P/E ratio at 7.92. 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 3.11 while NextEra Energy Partners's P/B ratio is 0.12.

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 NextEra Energy Partners's is 0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NextEra Energy's ROE at 14.24% and NextEra Energy Partners's ROE at 3.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.74 for NextEra Energy and $17.07 for NextEra Energy Partners. Over the past year, NextEra Energy's prices ranged from $53.81 to $86.10, with a yearly change of 60.01%. NextEra Energy Partners's prices fluctuated between $17.07 and $35.15, with a yearly change of 105.92%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.