Comparing Huaneng Power International Inc ADR Class N (HNP) and NRG Energy (NYSE:NRG)

Huaneng Power International Inc ADR Class N (NYSE:HNP) and NRG Energy (NYSE:NRG) are both mid-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Huaneng Power International Inc ADR Class N and NRG Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huaneng Power International Inc ADR Class N 1 1 1 0 2.00
NRG Energy 0 3 3 0 2.50

NRG Energy has a consensus target price of $44.00, suggesting a potential upside of 29.26%. Given NRG Energy’s stronger consensus rating and higher possible upside, analysts clearly believe NRG Energy is more favorable than Huaneng Power International Inc ADR Class N.

Risk & Volatility

Huaneng Power International Inc ADR Class N has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, NRG Energy has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Dividends

Huaneng Power International Inc ADR Class N pays an annual dividend of $0.53 per share and has a dividend yield of 2.1%. NRG Energy pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Huaneng Power International Inc ADR Class N pays out 331.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NRG Energy pays out 5.0% of its earnings in the form of a dividend.

Institutional and Insider Ownership

0.3% of Huaneng Power International Inc ADR Class N shares are held by institutional investors. Comparatively, 97.2% of NRG Energy shares are held by institutional investors. 0.6% of NRG Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Huaneng Power International Inc ADR Class N and NRG Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huaneng Power International Inc ADR Class N $24.70 billion 0.39 $110.97 million $0.16 156.75
NRG Energy $9.48 billion 0.96 $268.00 million $2.41 14.12

NRG Energy has lower revenue, but higher earnings than Huaneng Power International Inc ADR Class N. NRG Energy is trading at a lower price-to-earnings ratio than Huaneng Power International Inc ADR Class N, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Huaneng Power International Inc ADR Class N and NRG Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huaneng Power International Inc ADR Class N 1.67% 1.82% 0.49%
NRG Energy 4.64% -125.35% 3.76%

Summary

NRG Energy beats Huaneng Power International Inc ADR Class N on 11 of the 16 factors compared between the two stocks.

Huaneng Power International Inc ADR Class N Company Profile

Huaneng Power International, Inc., through its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People's Republic of China and Singapore. It is involved in the development, investment, construction, operation, and management of power plants and related projects; and generation, wholesale, and retail of power and other relating utilities. The company generates power from coal, wind, gas, oil, biomass, solar, and hydro resources. It is also involved in the sale of coal ash and lime; provision of loading warehousing and conveying services; photovoltaic power generation projects development and construction; and provision of thermal energy and cold energy services, as well as thermal heating services. In addition, the company engages in the repair of power equipment; provision of water supply and transportation services; construction and operation of electricity distribution networks and heating pipe networks; power supply, energy transmission, and substation project contracting activities; cargo transportation along domestic coastal areas; port management, investment, and development activities; and port provision, and cargo loading and storage activities. Further, it is involved in the aquaculture and agriculture irrigation activities, as well as provides environment engineering, waste recycling consultancy, and industrial waste management and recycling services. Additionally, it sells raw and processed coal; and provides central heat, and plumbing and pipe installation services, as well as desalinated water. As of March 31, 2018, the company had controlled generating capacity of 104,301 megawatts and a total generating capacity of 91,783 megawatts. Huaneng Power International, Inc. was founded in 1994 and is headquartered in Beijing, the People's Republic of China.

NRG Energy Company Profile

NRG Energy, Inc., together with its subsidiaries, operates as an energy company in the United States. The company is involved in the producing, selling, and delivering electricity and related products and services to 3.1 million residential, industrial, and commercial consumers. It generates electricity using natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear sources. The company also provides system power, distributed generation, solar and wind products, backup generation, storage and distributed solar, demand response, energy efficiency, advisory, and on-site energy solutions; and carbon management and specialty services. In addition, it trades in electric power, natural gas, and related commodity and financial products, including forwards, futures, options, and swaps. Further, the company supplies fuels; provides transportation services; and directly sells energy, services, and products and services to retail customers under the NRG, Reliant, and other names. It develops, constructs, owns, and operates natural gas, coal, oil, solar, nuclear, wind, fossil fuel, and nuclear plants with generation capacity of 23,000 megawatts. The company was founded in 1989 and is headquartered in Princeton, New Jersey.

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