AES (NYSE:AES) and Canadian Utilities (OTCMKTS:CDUAF) are both utilities companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares AES and Canadian Utilities’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AES $10.74 billion 1.13 $1.20 billion $1.24 14.72
Canadian Utilities N/A N/A N/A N/A N/A

AES has higher revenue and earnings than Canadian Utilities.

Analyst Ratings

This is a summary of current ratings for AES and Canadian Utilities, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AES 1 3 0 0 1.75
Canadian Utilities 0 1 0 0 2.00

AES currently has a consensus price target of $13.33, indicating a potential downside of 26.94%. Given AES’s higher possible upside, equities analysts clearly believe AES is more favorable than Canadian Utilities.

Dividends

AES pays an annual dividend of $0.55 per share and has a dividend yield of 3.0%. Canadian Utilities does not pay a dividend. AES pays out 44.4% of its earnings in the form of a dividend. AES has raised its dividend for 6 consecutive years.

Institutional and Insider Ownership

93.4% of AES shares are owned by institutional investors. 1.1% of AES shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares AES and Canadian Utilities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AES 11.20% 19.43% 3.36%
Canadian Utilities N/A N/A N/A

Summary

AES beats Canadian Utilities on 9 of the 11 factors compared between the two stocks.

AES Company Profile

The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The company also owns and/or operates utilities to generate or purchase, distribute, transmit, and sell electricity to end-user customers in the residential, commercial, industrial, and governmental sectors; and generates and sells electricity on the wholesale market. It uses a range of fuels to generate electricity, including natural gas, coal, pet coke, diesel, and oil, as well as renewables, such as hydro, solar, wind, energy storage, biomass, and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,905 megawatts. It has operations in the United States, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia. The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia.

Canadian Utilities Company Profile

Canadian Utilities Limited engages in the electricity, and pipelines and liquids businesses. It operates through Electricity, Pipelines & Liquids, and Corporate & Other segments. The Electricity segment engages in the generation, transmission, and distribution of electricity using coal, natural gas, hydroelectric, and wind resources, as well as related infrastructure development in Western Canada, Ontario, the Yukon, the Northwest Territories, Australia, and Mexico. The Pipelines & Liquids segment is involved in the integrated natural gas transmission, distribution, and storage activities; and related infrastructure development activities, as well as provision of industrial water solutions throughout Alberta, the Lloydminster area of Saskatchewan, Western Australia, and Mexico. It owns and operates approximately 9,400 kilometers of natural gas pipelines, 30 compressor sites, and approximately 4,000 receipt and delivery points. The Corporate & Other segment engages in retail electricity and natural gas businesses; and commercial real estate holding activities. The company was incorporated in 1927 and is headquartered in Calgary, Canada. Canadian Utilities Limited is a subsidiary of ATCO Ltd.

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