Financial Survey: Innergex Renewable Energy (OTCMKTS:INGXF) versus Eversource Energy (NYSE:ES)

Innergex Renewable Energy (OTCMKTS:INGXF) and Eversource Energy (NYSE:ES) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Volatility & Risk

Innergex Renewable Energy has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Eversource Energy has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Innergex Renewable Energy and Eversource Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innergex Renewable Energy	5.51%	5.30%	0.76%
Eversource Energy	12.55%	11.59%	2.97%

Insider and Institutional Ownership

80.0% of Eversource Energy shares are held by institutional investors. 4.7% of Innergex Renewable Energy shares are held by insiders. Comparatively, 0.2% of Eversource Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Innergex Renewable Energy pays an annual dividend of $0.26 per share and has a dividend yield of 2.6%. Eversource Energy pays an annual dividend of $3.15 per share and has a dividend yield of 4.2%. Innergex Renewable Energy pays out 185.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eversource Energy pays out 67.3% of its earnings in the form of a dividend. Eversource Energy has increased its dividend for 2 consecutive years. Eversource Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Innergex Renewable Energy and Eversource Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innergex Renewable Energy	$764.31 million	2.69	$11.60 million	$0.14	72.18
Eversource Energy	$13.55 billion	2.08	$1.69 billion	$4.68	16.02

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Innergex Renewable Energy and Eversource Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innergex Renewable Energy	0	0	0	0	0.00
Eversource Energy	3	5	4	0	2.08

Eversource Energy has a consensus target price of $71.82, suggesting a potential downside of 4.20%. Given Eversource Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Eversource Energy is more favorable than Innergex Renewable Energy.

Summary

Eversource Energy beats Innergex Renewable Energy on 14 of the 17 factors compared between the two stocks.

About Innergex Renewable Energy

Innergex Renewable Energy Inc. operates as an independent renewable power producer in Canada, the United States, France, and Chile. It acquires, owns, develops, and operates renewable power-generating and energy storage facilities primarily in hydroelectric, wind, and solar power sectors. The company operates through three segments: Hydroelectric Power Generation, Wind Power Generation, and Solar Power Generation. As of February 21, 2024, it owned and operated 87 facilities with a net installed capacity of 3,600 megawatts, including 41 hydroelectric facilities, 35 wind facilities, 9 solar facilities, and 2 battery energy storage facilities. The company is headquartered in Longueuil, Canada.

About Eversource Energy

Eversource Energy, a public utility holding company, engages in the energy delivery business. The company operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. It is involved in the transmission and distribution of electricity; solar power facilities; and distribution of natural gas. The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal and fire protection, and other customers in Connecticut, Massachusetts, and New Hampshire. The company was formerly known as Northeast Utilities and changed its name to Eversource Energy in April 2015. Eversource Energy was incorporated in 1927 and is headquartered in Springfield, Massachusetts.