Reviewing Itm Power (OTCMKTS:ITMPF) and AES (NYSE:AES)

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

Profitability

This table compares Itm Power and AES’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itm Power	N/A	N/A	N/A
AES	14.30%	21.49%	3.76%

Institutional and Insider Ownership

93.1% of AES shares are held by institutional investors. 0.8% of AES shares are held 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.

Earnings & Valuation

This table compares Itm Power and AES”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itm Power	$33.35 million	27.21	-$58.30 million	N/A	N/A
AES	$12.23 billion	0.86	$910.00 million	$1.87	7.87

AES has higher revenue and earnings than Itm Power.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Itm Power and AES, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itm Power	0	1	1	0	2.50
AES	0	8	0	0	2.00

AES has a consensus price target of $15.71, suggesting a potential upside of 6.72%. Given AES’s higher probable upside, analysts clearly believe AES is more favorable than Itm Power.

Risk and Volatility

Itm Power has a beta of 3.33, meaning that its stock price is 233% more volatile than the S&P 500. Comparatively, AES has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

AES beats Itm Power on 8 of the 12 factors compared between the two stocks.

About Itm Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.

About AES

The AES Corporation, together with its subsidiaries, operates as a diversified power generation and utility company in the United States and internationally. The company owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries; 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 various fuels and technologies to generate electricity, such as coal, gas, hydro, wind, solar, and biomass, as well as renewables comprising energy storage and landfill gas. The company owns and/or operates a generation portfolio of approximately 34,596 megawatts and distributes power to 2.6 million customers. 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 incorporated in 1981 and is headquartered in Arlington, Virginia.