Comparing Avista (NYSE:AVA) and China Resources Power (OTCMKTS:CRPJY)

Avista (NYSE:AVA) and China Resources Power (OTCMKTS:CRPJY) are both utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Volatility and Risk

Avista has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, China Resources Power has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Avista and China Resources Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avista	$1.94 billion	1.55	$180.00 million	$2.22	16.67
China Resources Power	$13.49 billion	0.95	$1.84 billion	N/A	N/A

China Resources Power has higher revenue and earnings than Avista.

Insider and Institutional Ownership

85.2% of Avista shares are owned by institutional investors. 1.0% of Avista shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Avista pays an annual dividend of $1.96 per share and has a dividend yield of 5.3%. China Resources Power pays an annual dividend of $1.22 per share and has a dividend yield of 3.3%. Avista pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avista has raised its dividend for 23 consecutive years. Avista is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Avista and China Resources Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avista	0	2	0	0	2.00
China Resources Power	0	0	1	0	3.00

Avista presently has a consensus target price of $39.00, indicating a potential upside of 5.39%. Given Avista’s higher probable upside, equities analysts plainly believe Avista is more favorable than China Resources Power.

Profitability

This table compares Avista and China Resources Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avista	9.13%	6.86%	2.25%
China Resources Power	N/A	N/A	N/A

Summary

Avista beats China Resources Power on 9 of the 15 factors compared between the two stocks.

About Avista

Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho; and natural gas distribution services in parts of northeastern and southwestern Oregon, as well as generates electricity in Washington, Idaho, Oregon, and Montana. This segment also engages in the supply of electricity to customers in Montana; and wholesale purchase and sale of electricity and natural gas. The AEL&P segment offers electric services in Juneau, Alaska. The company generates electricity through hydroelectric, thermal, wind, and solar generation facilities. As of December 31, 2023, it supplied retail electric services to approximately 416,000 customers; and retail natural gas services to approximately 381,000 customers. The company also operates five hydroelectric generation facilities with capacity of 102.7 MW; and four diesel generating facilities with a capacity of 107.5 MW. It also engages in venture fund investments, real estate investments, and other investments. Avista Corporation was incorporated in 1889 and is headquartered in Spokane, Washington.

About China Resources Power

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People's Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects. As of December 31, 2022, the company had 42 coal-fired power plants, 159 wind farms, 38 photovoltaic power plants, 2 hydroelectric plants, and 5 gas-fired plants with total attributable operational generation capacity of 52,581 MW. It also engages in coal mining and marketing activities; and undertakes combined generation of heat and power, coal-electricity integration, and other projects. In addition, the company is involved in the distribution of energy, power sale, intelligent energy, coal mining, and other areas; and distribution network construction and operation, distributed energy resource, and other businesses. The company was incorporated in 2001 and is based in Wan Chai, Hong Kong. China Resources Power Holdings Company Limited operates as a subsidiary of CRH (Power) Limited.