Critical Analysis: Nextera Energy Partners (NYSE:NEP) vs. Heliogen (NYSE:HLGN)

Nextera Energy Partners (NYSE:NEP) and Heliogen (NYSE:HLGN) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Profitability

This table compares Nextera Energy Partners and Heliogen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextera Energy Partners	-0.73%	1.34%	0.85%
Heliogen	N/A	N/A	-147.90%

Risk & Volatility

Nextera Energy Partners has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Heliogen has a beta of 2.8, meaning that its share price is 180% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Nextera Energy Partners and Heliogen, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextera Energy Partners	2	0	0	0	1.00
Heliogen	0	1	0	0	2.00

Nextera Energy Partners presently has a consensus target price of $10.00, suggesting a potential upside of 0.00%. Given Nextera Energy Partners’ higher probable upside, research analysts plainly believe Nextera Energy Partners is more favorable than Heliogen.

Institutional & Insider Ownership

66.0% of Nextera Energy Partners shares are owned by institutional investors. Comparatively, 27.6% of Heliogen shares are owned by institutional investors. 0.1% of Nextera Energy Partners shares are owned by company insiders. Comparatively, 3.8% of Heliogen shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Nextera Energy Partners and Heliogen”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextera Energy Partners	$1.23 billion	0.00	-$10.00 million	($0.10)	N/A
Heliogen	$4.45 million	1.40	-$129.60 million	($20.81)	-0.05

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

Summary

Nextera Energy Partners beats Heliogen on 7 of the 12 factors compared between the two stocks.

About Nextera Energy Partners

NextEra Energy Partners LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.

About Heliogen

Heliogen, Inc., together with its subsidiaries, develops and commercializes concentrated solar energy in the United States. It is developing a modular, AI-enabled, concentrated solar energy plant that will use an array of mirrors to reflect sunlight and capture, concentrate, store and convert it into cost-effective energy on demand. The company offers heliostat fields, and associated control systems, solar receivers, thermal energy storage, and heat engines. Its solutions include carbon-free steam production, a system that produces heat or steam for use in industrial processes; net zero power generation system, a turbine generator with the baseline system, which achieves net-zero emissions in electricity production; and green hydrogen production, and electrolyzer with the baseline system that produces green hydrogen fuel. The company also offers professional services, such as turnkey project construction, project site development, and research and development studies. It serves the food and beverage, mining and mineral processing, oil and gas, transportation, chemicals, cement, and metals manufacturing industries. The company was formerly known as Edison Microgrids, Inc. and changed its name to Heliogen, Inc. in November 2019. The company is headquartered in Pasadena, California.