Analyzing Xcel Energy (NYSE:XEL) and Cleco Corporate (CNL)

Cleco Corporate (NYSE: CNL) and Xcel Energy (NYSE:XEL) are both companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Earnings and Valuation

How to Become a New Pot Stock Millionaire

This table compares Cleco Corporate and Xcel Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cleco Corporate N/A N/A N/A N/A N/A
Xcel Energy $11.40 billion 2.02 $1.15 billion N/A N/A

Xcel Energy has higher revenue and earnings than Cleco Corporate.

Dividends

Cleco Corporate pays an annual dividend of $1.60 per share and has a dividend yield of 2.9%. Xcel Energy pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Cleco Corporate has increased its dividend for 8 consecutive years and Xcel Energy has increased its dividend for 14 consecutive years. Xcel Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

74.0% of Xcel Energy shares are held by institutional investors. 0.2% of Xcel 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.

Profitability

This table compares Cleco Corporate and Xcel Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cleco Corporate 21.96% 11.84% 3.86%
Xcel Energy 10.06% 10.44% 2.80%

Risk & Volatility

Cleco Corporate has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Xcel Energy has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Cleco Corporate and Xcel Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cleco Corporate 0 0 0 0 N/A
Xcel Energy 0 7 5 0 2.42

Xcel Energy has a consensus target price of $47.58, suggesting a potential upside of 5.09%. Given Xcel Energy’s higher probable upside, analysts clearly believe Xcel Energy is more favorable than Cleco Corporate.

Summary

Xcel Energy beats Cleco Corporate on 7 of the 11 factors compared between the two stocks.

About Cleco Corporate

Cleco Corporate Holdings LLC, formerly Cleco Corporation, is a public utility holding company. The Company’s segments include Cleco Power and Other. Cleco Power is a regulated electric utility company that owns over 10 generating units with a total nameplate capacity of approximately 3,330 megawatts (MW) and serves approximately 287,000 customers in Louisiana through its retail business and supplies wholesale power in Louisiana and Mississippi. The Company, through its subsidiaries, owns one transmission substation in Louisiana and one transmission substation in Mississippi. Cleco Power is engaged in the generation, transmission, distribution and sale of electricity within Louisiana. It owns natural gas pipelines and interconnections at all of its generating facilities, which allow it to access various natural gas supply markets and maintain an economical fuel supply for its customers. The Company holds investments in its subsidiary, Cleco Power LLC (Cleco Power).

About Xcel Energy

Xcel Energy Inc. is a public utility holding company. The Company’s operations include the activity of four utility subsidiaries that serve electric and natural gas customers in eight states. The Company’s segments include regulated electric utility, regulated natural gas utility and all other. The Company’s utility subsidiaries include NSP-Minnesota, NSP-Wisconsin, Public Service Company of Colorado (PSCo) and Southwestern Public Service Co. (SPS), which serve customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. Along with WYCO Development LLC (WYCO), a joint venture formed with Colorado Interstate Gas Company, LLC (CIG) to develop and lease natural gas pipelines storage and compression facilities, and WestGas InterState, Inc. (WGI), an interstate natural gas pipeline company, these companies comprise the regulated utility operations.

Receive News & Ratings for Cleco Corporate Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cleco Corporate and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply