Reviewing Altus Power (NYSE:AMPS) and NextEra Energy Partners (NYSE:NEP)

Altus Power (NYSE:AMPS) and NextEra Energy Partners (NYSE:NEP) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Volatility and Risk

Altus Power has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, NextEra Energy Partners has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

46.5% of Altus Power shares are held by institutional investors. Comparatively, 66.0% of NextEra Energy Partners shares are held by institutional investors. 24.3% of Altus Power shares are held by insiders. Comparatively, 0.1% of NextEra Energy Partners shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Altus Power	19.18%	4.79%	1.16%
NextEra Energy Partners	17.47%	-1.07%	-0.68%

Dividends

Altus Power pays an annual dividend of $1.59 per share and has a dividend yield of 41.8%. NextEra Energy Partners pays an annual dividend of $3.67 per share and has a dividend yield of 20.5%. Altus Power pays out 722.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NextEra Energy Partners pays out 168.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares Altus Power and NextEra Energy Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altus Power	$185.99 million	3.29	-$9.35 million	$0.22	17.27
NextEra Energy Partners	$1.08 billion	1.55	$200.00 million	$2.18	8.22

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

Analyst Ratings

This is a summary of current ratings for Altus Power and NextEra Energy Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Altus Power	1	1	5	2	2.89
NextEra Energy Partners	2	11	4	0	2.12

Altus Power currently has a consensus price target of $5.21, indicating a potential upside of 37.22%. NextEra Energy Partners has a consensus price target of $26.00, indicating a potential upside of 45.17%. Given NextEra Energy Partners’ higher probable upside, analysts clearly believe NextEra Energy Partners is more favorable than Altus Power.

Summary

Altus Power beats NextEra Energy Partners on 10 of the 17 factors compared between the two stocks.

About Altus Power

Altus Power, Inc., a clean electrification company, develops, owns, constructs, and operates roof, ground, and carport-based photovoltaic solar energy generation and storage systems. It serves commercial, industrial, public sector, and community solar customers. Altus Power, Inc. was founded in 2013 and is headquartered in Stamford, Connecticut.

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.