Head-To-Head Review: PPL (NYSE:PPL) vs. Hydro One (OTCMKTS:HRNNF)

Hydro One (OTCMKTS:HRNNF) and PPL (NYSE:PPL) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Profitability

This table compares Hydro One and PPL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hydro One	N/A	N/A	N/A
PPL	9.53%	7.82%	2.86%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hydro One and PPL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hydro One	0	1	0	0	2.00
PPL	0	4	2	0	2.33

Hydro One presently has a consensus target price of $31.40, suggesting a potential upside of 12.50%. PPL has a consensus target price of $29.88, suggesting a potential upside of 14.38%. Given PPL’s stronger consensus rating and higher probable upside, analysts clearly believe PPL is more favorable than Hydro One.

Earnings & Valuation

This table compares Hydro One and PPL’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hydro One	N/A	N/A	N/A	N/A	N/A
PPL	$8.57 billion	2.25	$756.00 million	$1.11	23.61

PPL has higher revenue and earnings than Hydro One.

Institutional & Insider Ownership

73.1% of PPL shares are owned by institutional investors. 0.2% of PPL shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

PPL beats Hydro One on 9 of the 9 factors compared between the two stocks.

About Hydro One

Hydro One Limited, through its subsidiaries, operates as an electricity transmission and distribution company in Ontario. The company operates through three segments: Transmission, Distribution, and Other. It owns and operates high-voltage transmission lines and primary low-voltage distribution network. The company serves residential, small business, commercial, and industrial customers, as well as municipal utilities. It also provides telecommunications support services for its transmission and distribution businesses; and information and communications technology services and solutions. The company was incorporated in 2015 and is headquartered in Toronto, Canada.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.5 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.