Clearway Energy Inc Class C (NYSE:NYLD) and Black Hills (NYSE:BKH) are both utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

29.6% of Clearway Energy Inc Class C shares are held by institutional investors. Comparatively, 87.4% of Black Hills shares are held by institutional investors. 0.2% of Clearway Energy Inc Class C shares are held by insiders. Comparatively, 1.0% of Black Hills shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Clearway Energy Inc Class C and Black Hills, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearway Energy Inc Class C 0 1 0 0 2.00
Black Hills 1 5 0 0 1.83

Clearway Energy Inc Class C currently has a consensus price target of $20.00, suggesting a potential downside of 0.50%. Black Hills has a consensus price target of $65.40, suggesting a potential downside of 8.30%. Given Clearway Energy Inc Class C’s stronger consensus rating and higher probable upside, equities analysts plainly believe Clearway Energy Inc Class C is more favorable than Black Hills.

Earnings & Valuation

This table compares Clearway Energy Inc Class C and Black Hills’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clearway Energy Inc Class C N/A N/A N/A N/A N/A
Black Hills $1.75 billion 2.45 $258.44 million $3.54 20.15

Black Hills has higher revenue and earnings than Clearway Energy Inc Class C.

Profitability

This table compares Clearway Energy Inc Class C and Black Hills’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearway Energy Inc Class C N/A N/A N/A
Black Hills 14.73% 9.75% 2.93%

Dividends

Clearway Energy Inc Class C pays an annual dividend of $1.28 per share and has a dividend yield of 6.4%. Black Hills pays an annual dividend of $2.02 per share and has a dividend yield of 2.8%. Black Hills pays out 57.1% of its earnings in the form of a dividend. Clearway Energy Inc Class C has raised its dividend for 2 consecutive years and Black Hills has raised its dividend for 49 consecutive years.

Summary

Black Hills beats Clearway Energy Inc Class C on 7 of the 11 factors compared between the two stocks.

About Clearway Energy Inc Class C

Clearway Energy, Inc., through its subsidiaries, acquires, owns, and operates contracted renewable and conventional generation, and thermal infrastructure assets in the United States. As of December 31, 2017, it had contracted renewable and conventional generation portfolio of 5,118 net megawatt (MW). The company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,319 net MW thermal equivalents, and electric generation capacity of 123 net MW. Its thermal infrastructure assets provide steam, hot water and/or chilled water, and electricity to commercial businesses, universities, hospitals, and governmental units. The company was founded in 2012 and is based in Princeton, New Jersey. NRG Yield, Inc. is a subsidiary of Global Infrastructure Partners.

About Black Hills

Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates through Electric Utilities, Gas Utilities, Power Generation, and Mining segments. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 212,000 electric customers in Colorado, Montana, South Dakota, and Wyoming, as well as provides electrical system construction services to large industrial customers. This segment owns 939 megawatts of generation capacity and 8,858 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,054,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. It also provides appliance repair services to residential customers through company technicians and third-party service providers; and constructs and maintains gas infrastructure facilities for gas transportation customers. This segment owns and operates approximately 4,700 miles of intrastate gas transmission pipelines; 41,158 miles of gas distribution mains and service lines; 7 natural gas storage sites; and approximately 45,000 horsepower of compression and 600 miles of gathering lines. The Power Generation segment produces electric power through wind, natural gas, and coal generating plants; and sells the electric capacity and energy primarily to utilities under long-term contracts. The Mining segment produces coal at its coal mine located near Gillette, Wyoming; and sells the coal to electric generation facilities. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.

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