Regency Energy Partners (NYSE: RGP) and Just Energy Group (NYSE:JE) are both utilities companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

29.2% of Just Energy Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Regency Energy Partners and Just Energy Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Energy Partners -0.30% -0.47% -0.07%
Just Energy Group 2.18% -117.41% 18.57%

Dividends

Just Energy Group pays an annual dividend of $0.40 per share and has a dividend yield of 7.1%. Regency Energy Partners does not pay a dividend. Just Energy Group pays out 800.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Just Energy Group has raised its dividend for 6 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Regency Energy Partners and Just Energy Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Energy Partners 0 0 0 0 N/A
Just Energy Group 0 2 3 0 2.60

Just Energy Group has a consensus target price of $8.80, indicating a potential upside of 56.03%. Given Just Energy Group’s higher possible upside, analysts plainly believe Just Energy Group is more favorable than Regency Energy Partners.

Valuation & Earnings

This table compares Regency Energy Partners and Just Energy Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Regency Energy Partners N/A N/A N/A N/A N/A
Just Energy Group $3.05 billion 0.27 $171.99 million $0.05 112.80

Just Energy Group has higher revenue and earnings than Regency Energy Partners.

Summary

Just Energy Group beats Regency Energy Partners on 8 of the 10 factors compared between the two stocks.

Regency Energy Partners Company Profile

Regency Energy Partners LP gathers and processes, compress, treats and transports natural gas; transports, fractionates and stores natural gas liquids (NGLs); gathers, transports and terminals oil received from producers; gathers and disposes salt water, and manages coal and natural resource properties in the United States. The Company has six business segments: Gathering and Processing, Natural Gas Transportation, NGL Services, Contract Services, Natural Resources and Corporate. The Gathering and Processing segment provides wellhead-to-market services to producers of natural gas. The Natural Gas Transportation segment owns a 49.99% general partner interest in RIGS Haynesville Partnership Co. The NGL Services segment owns a 30% membership interest in Lone Star NGL LLC. The Contract Services segment owns and operates a fleet of compressors. The Natural Resources segment manages coal and natural resources properties. The Corporate segment includes its corporate assets.

Just Energy Group Company Profile

Just Energy Group Inc. (Just Energy) is an energy management solutions provider engaged in electricity, natural gas, solar and green energy. The Company’s segments include Consumer Energy and Commercial Energy. The Company operates in the United States, Canada and the United Kingdom, offering a range of energy products, including long-term fixed-price, variable rate and flat bill programs; home energy management services, including smart thermostats and tools to manage energy use at the appliance level, and residential solar panel installations. It markets under the brands, such as Just Energy, Hudson Energy, Amigo Energy, GreenStar Energy, Just Solar, Tara Energy and TerraPass. Just Energy’s commercial business is operated primarily through Hudson Energy. Hudson Energy offers fixed and variable rate natural gas and electricity contracts, as well as customized products. Just Energy also offers green products through its JustGreen Electricity and Natural Gas and TerraPass programs.

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