Entergy (NYSE:ETR) versus Eurosite Power (OTCMKTS:EUSP) Critical Comparison

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eurosite Power and Entergy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eurosite Power	0	0	0	0	0.00
Entergy	1	4	14	1	2.75

Entergy has a consensus price target of $106.11, indicating a potential upside of 1.46%. Given Entergy’s stronger consensus rating and higher probable upside, analysts plainly believe Entergy is more favorable than Eurosite Power.

Institutional and Insider Ownership

88.1% of Entergy shares are owned by institutional investors. 0.5% of Entergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Eurosite Power has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Entergy has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Valuation and Earnings

This table compares Eurosite Power and Entergy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eurosite Power	$6.99 million	0.63	-$70,000.00	($0.09)	-0.57
Entergy	$12.95 billion	3.66	$1.77 billion	$3.91	26.75

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

Profitability

This table compares Eurosite Power and Entergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eurosite Power	N/A	-12.75%	-12.08%
Entergy	13.66%	10.89%	2.56%

Summary

Entergy beats Eurosite Power on 14 of the 15 factors compared between the two stocks.

About Eurosite Power

EuroSite Power Inc., owns, operates, and distributes on-site energy systems in the United Kingdom and Europe. Its energy systems produces and supplies electricity, heat, hot water, and cooling solutions to commercial and industrial customers, such as healthcare facilities, hotels, multi-family hotels, multi-family residential buildings, leisure centers, industrial buildings, and schools and colleges. The company was founded in 2010 and is headquartered in Waltham, Massachusetts.

About Entergy

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. It generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. It also engages in the ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides decommissioning services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company’s power plants have approximately 24,000 megawatts of electric generating capacity. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy Corporation was founded in 1913 and is headquartered in New Orleans, Louisiana.