NextNRG (NASDAQ:NXXT) & Plains GP (NYSE:PAGP) Critical Review

Plains GP (NYSE:PAGP) and NextNRG (NASDAQ:NXXT) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Plains GP and NextNRG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plains GP	2	6	4	1	2.31
NextNRG	1	1	1	0	2.00

Plains GP currently has a consensus price target of $24.18, suggesting a potential downside of 13.14%. NextNRG has a consensus price target of $15.00, suggesting a potential upside of 1,227.43%. Given NextNRG’s higher possible upside, analysts plainly believe NextNRG is more favorable than Plains GP.

Risk and Volatility

Plains GP has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, NextNRG has a beta of 0.04, suggesting that its stock price is 96% less volatile than the S&P 500.

Valuation & Earnings

This table compares Plains GP and NextNRG”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plains GP	$52.30 billion	0.11	$103.00 million	$2.79	9.98
NextNRG	$81.83 million	0.23	-$85.74 million	($0.44)	-2.57

Plains GP has higher revenue and earnings than NextNRG. NextNRG is trading at a lower price-to-earnings ratio than Plains GP, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Plains GP and NextNRG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plains GP	0.21%	0.70%	0.36%
NextNRG	-62.97%	N/A	-431.08%

Insider & Institutional Ownership

88.3% of Plains GP shares are held by institutional investors. Comparatively, 10.6% of NextNRG shares are held by institutional investors. 6.9% of Plains GP shares are held by company insiders. Comparatively, 53.7% of NextNRG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Plains GP beats NextNRG on 12 of the 15 factors compared between the two stocks.

About Plains GP

Plains GP Holdings, L.P., through its subsidiary, Plains All American Pipeline, L.P., owns and operates midstream infrastructure systems in the United States and Canada. It operates in two segments, Crude Oil and Natural Gas Liquids (NGLs). The company engages in the gathering and transporting crude oil and NGLs using pipelines, gathering systems, and trucks. It engages in the loading and unloading services at terminals; NGL fractionation and isomerization services; and natural gas and condensate processing services. The company offers logistics services to producers, refiners, and other customers. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was incorporated in 2013 and is headquartered in Houston, Texas.

About NextNRG

NextNRG, Inc. engages in the provision of fuel delivery services. It provides app-based interface customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Yehuda Levy and Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.